Countrywide Foreclosure Procedures
Foreclosure is a method of repossessing property that has been defaulted on by a borrower and transferring ownership to the bank for resale at public auction. While foreclosure proceedings will vary from state to state, most lenders have processes and procedures in place when moving a home into foreclosure status. Countrywide is among these lenders, and knowing its procedures in foreclosure proceedings is beneficial if Countrywide holds your mortgage.
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Default
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Once a mortgage payment is 30 days late, the loan is in a defaulted status. At this point the loan is turned over to Countrywide's collection department and phone calls to the homeowner to make up the delinquency will begin. This will typically continue for a period mandated by state government to allow the homeowner to make up the missed mortgage payments.
Acceleration
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After a homeowner misses at least three consecutive mortgage payments, the loan moves to accelerated status. Acceleration of the loan means that Countrywide is calling the entire loan balance due. At this point the company will ascertain if the property is vacant or the house if for sale.
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Time Frame
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A loan status will remain in accelerated status for 30 days. If the homeowner pays Countrywide the entire delinquent amount during this time, a the loan is reinstated. If the homeowner fails to make payment arrangements or pay the delinquent balance in full, Countrywide will begin foreclosure proceedings.
Appraisal
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The first step Countrywide will take in foreclosure proceedings is sending an appraiser to the property to assess its market value. The appraiser will inspect the property both inside and out, take square footage measurements and report his findings to Countrywide.
Trustee
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Countrywide will assign a trustee from its bank to post a foreclosure notice with the courts and file with the county clerk's office. At this juncture, the homeowner is sent a certified letter with the foreclosure auction information and a notice to vacate the premises. This is typically done no later than 21 days before the foreclosure sale.
Eviction
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Once the property has been purchased at a foreclosure auction, Countrywide will enlist the assistance of the county sheriff to post a notice on the property in reference to the foreclosure and force anyone living in the property out. Countrywide will move out all furniture, and leave it on the sidewalk if the tenant of the property fails to cooperate.
Prevention/Solution
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If you are being threatened with foreclosure with Countrywide, contact the company to try to work out a payment arrangement before foreclosure proceedings. There are many options available to prevent foreclosure.
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