What Is a "Forced" Foreclosure?
If you have a mortgage on your home and you can't make your payments, the lender may foreclose. There are two main types of foreclosure, and each type has different implications for the homeowner. In a forced foreclosure, the lender forecloses on the home against the homeowner's wishes.
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Foreclosure Types
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When you can no longer make your mortgage payments, you may decide to walk away from your home and turn it over to the bank. Since the foreclosure was your decision, it is a voluntary foreclosure. However, if you fall behind in your payments but aren't willing give up your home, the lender may perform a forced foreclosure. In a forced foreclosure, the lender evicts you from the home and sells it to recover the debt.
Forced Foreclosure Process
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In most states, the lender can't foreclose on your home without first filing a lawsuit. After the lawsuit is filed, the court schedules a hearing to decide whether it will force the sale of the home. At the hearing, both you and the lender will present your side of the case to the judge. If the judge decides in favor of the lender, he will issue a court order allowing the lender to proceed with the foreclosure.
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Defending Against Forced Foreclosure
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If your lender files a lawsuit to foreclose on your home, you can file a motion for an extension so that you can prepare your defense or find a way to pay the delinquency. If the lender has violated any state or federal foreclosure laws, or if you believe the lender has sold your loan to another company and can't legally sue you, you can file a motion for dismissal. If the judge dismisses the case, the lender must start the foreclosure process over, which gives you more time to find another solution.
Avoiding Forced Foreclosure
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If you are behind on your loan payments, you may be able to avoid a forced foreclosure by refinancing the debt for a more affordable payment. If you have extenuating circumstances, such as unemployment, you may also be able to work with the mortgage company to obtain a temporary payment reduction. If you don't think you can afford to keep the home, you can turn it over to the bank in a voluntary foreclosure, or you can attempt to sell it yourself.
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