What Happens When You Are Served a Foreclosure Notice?
What happens when you are served with a foreclosure notice depends on your particular state, because laws varies across the country. If you have trouble paying your mortgage, contact your lender as soon as possible to avoid or delay foreclosure proceedings. Some mortgage companies may be willing to work with you.
Other People Are Reading
-
Foreclosure Process
-
Usually, a mortgage company begins the process of foreclosure within three to six months after the initial missed payment. Companies generally start assessing late fees within 10 days to two weeks after the first missed payment. If payment is not made within 30 days, you are considered in default, and the foreclosure process picks up. Do not ignore the problem, as lack of contact with the lender may accelerate the process. Discuss possible alternatives with the lender or a counselor specializing in foreclosure.
Demand Letter
-
The first letter you may receive from the letter is a demand letter, also known as a pre-foreclosure notice. It states the amount owed and that the delinquent amount must be paid by a specified date. If you fail to pay the amount by the due date, foreclosure proceedings may start. You want to make amends before an actual foreclosure sale date is determined if you hope to keep your house. Even filing Chapter 13 bankruptcy may allow you to keep the house.
-
Judicial Foreclosure
-
In a judicial foreclosure, the lender files a suit in court, and the borrower receives a letter demanding that the delinquent amount be paid within 30 days. Depending on the state, this procedure may be a requirement. If you don't respond within the time frame, the property is auctioned off to the highest bidder. This process, carried out by the jurisdiction in charge of foreclosure, is often called a sheriff's sale. In certain states, the initial letter is all the information you will receive prior to the property sale if you don't pay the money owed. In other states, the lender must act through the court. Find out the process in your state.
Beware of Scams
-
Whenever people are in desperate circumstances, con artists smell an opportunity. Be wary of organizations offering to help you for a fee. Have your attorney look over any documents before signing them. If you are seeking counseling, make sure the counselor is approved by the U.S. Department of Housing and Urban Development, or HUD.
-
