Timeline for Foreclosure-Knowledge is Power

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Thursday, August 28th, 2008 Subscribe To Our Feed

If you are interested in discovering what it will take to halt foreclosure proceedings you will have to receive the knowledge that will be required in order to do so. In all honesty, the timeline for foreclosure is different from state to state, but there are similarities. If you are a homeowner it would be in your best interest to entirely understand and know the completeforeclosure process, not just the timeline for foreclosure. Many borrowers lack knowledge or are very uninformed, or even misinformed. This unfortunate lack of knowledge can end up being devastating.

As you have probably realized, any undertaking without the proper knowledge will usually wind up being a bum deal. Many homeowners do not understand or want to admit that there are sharks out there disguised as mortgage brokers, real estate investors and attorneys that will rob you blind. Your misfortune, likely caused by lack of understanding can bring them large monetary gain.

The timeline for foreclosure will generally follow this agenda. The foreclosure timeline (begins~is initiated~starts} when you are just one day late in making your mortgage payment. Yes, one day late. Most of the time, at this point no extra fees have been added yet. If you do not pay payment within 16-30 days a penalty or a late charge will be added on to the total amount due. About this time you will certainly hear from the mortgage lender. They will ask you why you haven’t sent your mortgage payment. If your housepayment goes more that 30 days past due, you will be defined as in default of your mortgage loan agreement.

Being in default in the simplest terms, at this point, means you are behind on your loan payments. If you have not made a loan payment after thirty days, the lender may decide to exercise their rights and take possession of your property. Whatever you do, do not freak out. Remain calm and stay in contact with your mortgage lender during this foreclosure process. These days the bulk of lenders really do not want to take possession of the house. They will likely be willing to help you if they can. Do not be afraid to inquire about what programs they have available to you.

The rest of the timeline for foreclosure is as follows: The lender will usually file a Notice of Default when the borrower is more than of 30 days late with a payment. Somewhere the 45th and 60th day, the mortgage lender will send a “breach” letter to the borrower. This is an official letter and it states the mortgage agreements terms and conditions. This formal letter will inform the borrower that they are giving just 30 days to bring the loan to a current status. Expect to hear very frequently from the collection department of the mortgage company. Stay calm and cooperative. They will usually make a few options or options for the homeowner to quickly fix the predicament they are now in. Many will offer a loan modification or a short term payment plan to bring the past due payments to a current status.

Between the 60th and 90th days or non-payment, an official notice of default will be sent to the borrower. At this point during the timeline for foreclosure, collection costs will be tacked onto the late fees. The now defaulted loan will be referred to the mortgage lender’s own legal department. Their legal department will prepare and send the required documents to a local attorney. This will begin the actual foreclosure proceedings.

The last portion of the timeline for foreclosure occurs anywhere between day 150 and day 415. The borrowers property will be scheduled for liquidation at a foreclosure sale or a foreclosure auction after the Notice of Trustee Sale is filed. There are certain benchmarks and points that must be followed and adhered to during a foreclosure process. Remember that a foreclosure proceeding is a legal event. The impending foreclosure should be advertised in the local newspapers, once the case is handed over to local attorneys.

The homeowner still has the right to halt the process leading up to the foreclosure of the property. Most states have laws regarding that. During the pre-foreclosure period, the homeowner may be able to purchase the property back from the lender if they have secured the financial means. Sadly the majority of homeowners will be forced from their house by the local sheriffs department. This situation could be avoided if the homeowner pocesses the knowledge of what is available to them when they are facing foreclosure.

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