You may have thought that you need to leave your home just after missing one or two payments on your loan. You don’t need to panic even when the foreclosure process starts. It is the legal right of homeowners to remain in their houses till the foreclosure process completes. The foreclosure process may take months or sometimes years to complete. We will discuss the whole process from falling behind on payments to foreclosure sale.
Payments Start Missing
After missing several payments, you always have the loan modification options to choose. You can even ask your lender for help. If you don’t want to bother your lender, you can take the advice of any loan modification expert. If you start missing your payments, don’t panic and never leave the house. Upon missing your first couple of payments, the lender simply gives you a notice. After missing more payments, the lender again sends you a letter which generally states that if you don’t make the missing payments, the foreclosure process will start.
Foreclosure Process Starts
When you don’t clear the missing payments, the lender starts the foreclosure process. After beginning the foreclosure process, there are always certain number of days to respond. You may have to go through judicial or non-judicial foreclosure process. Even when the foreclosure process starts, you don’t need to vacate your home. The foreclosure process may take months to complete. You can remain until the day of the foreclosure sale, as it is your right by law.
You can remain in your house till the foreclosure sale. You can also avoid the foreclosure sale making use of other options available, and one of them is short sale. Foreclosure sale is a lengthy process, so the lender may allow you to short sale your house to save some valuable time. However, if the foreclosure sale proceeds and someone buys yours house, they may start the eviction process if you don’t leave. The new buyer will send you the eviction notice if you don’t leave in the expected date. To avoid the eviction process, you can file a bankruptcy with the help of a lawyer. But to do so, you have to consult with the lawyer well in advance from the date of foreclosure.