Even good, hard-working people can fall behind in their finances and find themselves facing the possibility of foreclosure. Foreclosure brings fear to the hearts of many people – and rightfully so. It is a serious matter but not one without remedies. A foreclosure defense services attorney can sit down with you and help you find an option for staying in your home.
How do people end up in foreclosure? It is likely that one missed payment will not land you in foreclosure proceedings. However, house payments are not like other types of payments. You cannot fall very far behind before you find yourself facing the possibility of foreclosure. Sometimes, your lender will work out payment arrangements with you if you contact them in time. If the lender does not hear from you, then foreclosure proceedings may begin. As soon as you receive a notice of foreclosure, you should contact a foreclosure defense services attorney immediately.
Once you miss a mortgage payment, you begin accruing late fees. If your payment is more than 30 days late, your mortgage is considered to be in default. It is likely your lender will contact you to try to work out some type of payment arrangements before beginning foreclosure proceedings, but that is not something you can rely on.
The time it takes to receive a notice of foreclosure can vary from state to state, but it is safe to say that if you have not made a house payment in three months; you should start to expect that a notice of foreclosure will be coming very soon. The notice of foreclosure is considered a final warning before the lender repossesses your property and sells your home.
There are different types of foreclosures that vary from state to state and with the terms you have with your mortgage lender. Here are some of the most common types:
- Judicial foreclosure: Most foreclosures are judicial foreclosures. The court oversees the process. Your home is sold at a public auction. This auction may be handled by a local Sheriff or through a private organization. This money is used to pay off your mortgage and any liens against the property. It is possible that there may be money left over after the debt is paid. If so, you will receive this money back.
- Strict foreclosure: This is also a foreclosure that is overseen by the court. However, with a strict foreclosure, the lender is not required to sell the property. Even if the lender does sell your home, it does not have to give you any money left. Most states do not use the strict foreclosure and if they do, it is only when you owe more on your property than it is worth.
- Power of Sale: This foreclosure is done without court involvement. The financial institution auction off the home to pay off your debt. It is possible with a power of sale to receive any money that is not applied toward the debt.
Foreclosure is a scary thing. Before you reach the point of losing your home, discuss your options with a foreclosure defense service. Theses attorneys have years of experience handling foreclosure cases and know what your best foreclosure solutions may be.