If you are facing any financial troubles, foreclosure and eviction are probably on your mind as the worst case nightmare. However, it does not necessarily have to come to that since there are many ways to deal with the situation. In order to do so, it helps if you understand how the real estate foreclosure process really works.
The process begins if you miss 3-6 instalment payments, the exact will be mentioned in the terms of your loan. In order to begin the process of foreclosure, the lender will send you a Notice of Default (NOD) and also file the same with the local records authority. A Lis Pendens may also be filed, which is a notification that the estate is pending litigation. The notice will list all the dues and fees along with the deadlines to be paid in order to prevent foreclosure.
If the deadlines are not met, then you will get a Notice of Sale, which will also be posted in the local records authority and published in local newspapers. The notice states a date for auctioning the house. The bank repossesses the estate and tries to sell it in a public auction. The starting price of the auction is set to cover all the remaining debts and any extra fees and expenses associated with the foreclosing process itself. This is an attempt to quickly sell the asset and recover the money that is owed to the bank. If the bank is not able to auction off the property, it remains in possession of the bank and is deemed Real Estate Owned (REO).
You will get several opportunities to stop foreclosure. You can pay all the dues mentioned in the Notice of Default and bring the loan current during the pre-foreclosure period. This period usually lasts for about three months, though the actual duration will be mentioned in the Notice of Default itself.
Another option is to negotiate for a loan modification. In this regard, seeking assistance from loan modification company like www.loanmoddepot.com will be enormously helpful. A loan modification specialist will help you renegotiate the terms of the original loan so that you can pay it back affordably.
Last option you may have is to declare bankruptcy. It will put a temporary halt to the foreclosure process and buy you some time to gather funds or negotiate mutually agreeable options with the lender.