Foreclosure is a scary word, and it shouldn’t be something that you have to think about. Unfortunately, many homeowners find themselves in this situation due to several reasons.
Those who are not subject to foreclosure should be aware of the foreclosure process. In case you find yourself caught in the middle of the same, you want to make sure you’re prepared to fight.
If this might be you one day, learn what some of the stages are in the foreclosure service.
Missed Payments and Default
When a homeowner fails to make their mortgage payments over a period of time, they risk going into default and potentially entering foreclosure. When a homeowner is delinquent on mortgage payments, typically the mortgage lender will start the foreclosure process. This is done by filing a notice of default (NOD) with the appropriate county office.
During this process, the homeowner has one last opportunity to cure the loan arrearage and save their home. They can do this by making the past due payments that resulted in the foreclosure action and any associated late fees.
Pre-Foreclosure or Notice of Default
Pre-Foreclosure or Notice of Default occurs when borrowers fail to meet the payment or other obligations established in the mortgage contract. Generally, this happens when the homeowner has failed to make payments for three to four months.
When this happens, the lender sends a Notice of Default to the homeowner. This document also outlines the borrower’s rights and the steps required by the homeowner to keep the house out of the foreclosure process.
Foreclosure Auction
Foreclosure Auctions are the final stage of the foreclosure process. Before a property reaches the point of a foreclosure auction, it would have gone through several stages.
At the auction, people who have the necessary funds may bid on the subject property. The highest bidder is announced as the winner and will be given title to the property. The foreclosure process typically takes several months, and the foreclosure auction is only one of the final steps.
Post-Foreclosure Eviction and Resale
After the auction, the highest bidder is awarded the deed to the home and is responsible for taking ownership of the property. Following this, the post-foreclosure eviction process begins and the tenant must be officially evicted for the new owner to resell the property.
This may involve an appeal process to the court to legally remove the tenant from the property. This is done before it is put back on the market for resale.
So let’s say we are still on the resale part and there’s no closed deal. Can a foreclosure be reversed? The answer is no, a foreclosure cannot be reversed unless you find an alternative lending program.
But if you want to avoid this complicated process, make sure that at the very early stage of the process, you are already working on avoiding such a foreclosure.
Understand Foreclosure Service
The foreclosure process can be stressful and daunting. Having a clear understanding of the stages of foreclosure can help alleviate the stress and provide clarity.
Foreclosure services can help examine all options available and navigate the process. Contact a professional foreclosure service today for expert guidance!
Should you wish to read more articles aside from these phases of foreclosure, visit our main blog.
