Article Treasure Cove

A foreclosure doesn’t happen over night. Actually it takes about six months from the 1st missed payment. Without exception there is a legal process that must be adhered to. In this article we chronicle the stages of a typical foreclosure process to help you in determining if you are at risk of foreclosure.

Are you behind a mortgage payment?
Should you be late with your loan payments then you are clearly at risk of a foreclosure. The best thing you can do is get caught up and make your payments on time. That could be easier said than done but you really should make it a high priority and not avoid the situation. If you would like more foreclosure information go to Loan-Modification-Masters.com to find out how you can receive assistance.

Haven’t missed a mortgage payment yet but fear you may?
Was your financial condition changed due to a loan payment being increased, losing you job, getting a divorce, expensive health issues, increase in taxes or other reasons?

Is your credit card debt getting unmanageable?
Have you been using a bank card to purchase groceries?
Are you finding it hard to pay all your monthly bills on time?
If it seems to be more difficult to pay your house payment each month you need to look for professional assistance. There are several places to receive counseling for debt and financial issues. Few people really think they will lose their house, they think they have more time.

Although the time-line differs from state to state, essentially this is the way a foreclosure unfolds:

The first months’ payment missed – your mortgage company will contact you by letter or phone. You should talk to them and always be polite and patient. Now it’s time to call a foreclosure specialist to learn what foreclosure programs are available to you.

You miss a second payment – your bank is probably going to begin calling you to learn the reason you have not made your payments. It is important for you to take their calls. Talk to the lender and explain your circumstances and how you are attempting to change it. At this time, you still may be able to give them a single payment to prevent yourself from falling three months behind.

A third payment missed – once a third payment is skipped, you are going to get a letter from you mortgage company informing you of the total you are behind, and that you have 30 days to bring your mortgage current. This is called a “Demand Letter” or “Notice to Accelerate”. If you do not pay the specified amount or make some arrangements by the stated date, the lender could start foreclosure proceedings. It is not likely they will take less than the total due without an agreement being made if you get this letter. You still have time to work out something with your mortgage company.

The fourth missed payment – this is near the end of time stated in your Notice to Accelerate or Demand Letter. When the thirty days comes to a close, if you have not paid the full amount delinquent or worked out an agreement you will be handed off to your mortgage company’s lawyers. You will be responsible for all lawyer expenses as part of your back owed amount.

Now you can expect a Public Trustee’s or Sheriff’s Sale – the lawyer will setup a Sale. This is the actual date of foreclosure. Probably you will be informed of the sale date by mail, a notification is put on your door, and the sale could be listed in a local newspaper. The period from the Demand or Notice to Accelerate Letter and the actual Sale varies in each state; it may be as quick as 2-3 months. This isn’t the move-out date, but it is imminent. You have until the day of sale to reach an agreement with your bank, or come up with the entire amount delinquent, along with attorney expenses.

Redemption Period – after the sale date, you could enter a redemption period. You will be notified of your schedule on the same form that your state issues your Sheriff’s or Public Trustee’s Sale.

Important: Stay in contact with your bank and seek out assistance as quickly as you can. All schedules are an estimation, and vary from stat to state and the lender.

Read realistic tips about what is forex – welcome to your own knowledge pack.