How Does the Real Estate Foreclosure Process Really Work?

Real estate foreclosure is a dreadful thing for homeowners because it is the process of losing their house as they cannot pay their mortgage. They may not be able to make payments due to illness, divorce, loss of job, and a variety of other factors. When a person begins to default on his mortgage plan and does not pay for a time lapse of 30 to 60 days, the following events occur.

Breach Letter

This is the first notice sent by the mortgage institutions to inform the client of their infringement of the rules. This occurs usually between 30 and 90 days of the client defaulting on payment.  This is sent to encourage the client to make the mortgage payments.

Foreclosure workout

The lender or mortgage company begins to look out for various ways to help their clients so they do not lose their homes. The mortgage company also does not want to lose their business, so they search for various ways of helping their clients to make their payment current and up to date; including forbearance agreement, loan modification arranged by loan modification companies or loan modification experts, and other options. When all these measures fail, a letter is sent to an attorney within 45 days to initiate the foreclosure suit against the offender.

Attorney referrals

At this stage, things start to get bad and after 90 days a petition is filed in a competent court. Thus the client’s house officially enters into the foreclosure period. If the process continues and the client cannot get any special indulgence, forbearance agreement or any other option available for him, he might lose his home.  There are experts who can help out before the situation gets out of hand. Loan modification depot is one of such companies.