How Is Someone Notified of Foreclosure?
If you fall behind on your mortgage, you likely fear an impending foreclosure. The foreclosure procedures and time frames vary from state to state. Even within some states, lenders may have the option to foreclosure judicially or non-judicially.
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Judicial Foreclosure
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In judicial foreclosure, the lender files a lawsuit against the homeowner. A hearing is held to determine if the home should be foreclosed. A sheriff's deputy typically serves the lawsuit paperwork to the homeowner once the complaint is filed. The paperwork may also be sent via certified mail, depending on the state requirements for a judicial foreclosure. You will have a specified amount of time to respond to the paperwork. If you do not respond, the court will issue a default judgment against you and schedule the sale date.
Non-Judicial Foreclosure
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In a non-judicial foreclosure, the power of sale clause grants the lender the right to sell the property once you fall behind on your mortgage payments. The lender has the authority to foreclose without filing a lawsuit. You may receive a Notice of Intent to Foreclose in the mail, although this is not necessarily required. In many cases, the sheriff will post the Notice of Sale or Notice of Intent to Foreclose directly on the property.
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Notifying the Public
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State foreclosure laws set specific requirements for notifying the public of the foreclosure auction. For example, in many states, the foreclosure sale must be posted in the local newspaper for a certain number of weeks prior. The advertisement includes the property address and description, date of sale and auction location. The lender may also be required to post the Notice of Sale in a public place, often the county courthouse.
Communicating with the Lender
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If you are facing foreclosure, it is important to communicate with your lender. Do not ignore letters or phone calls. By communicating with your lender, you may be able to reach a solution. You may be able to avoid foreclosure through loan modification or you can request a temporary payment suspension, known as a forbearance. Alternatives, including a short sale or deed in lieu of foreclosure, allow you to avoid a deficiency judgment. Contact a HUD-certified foreclosure prevention counselor if you need help understanding the foreclosure process or programs available to help you.
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