When a homeowner is late in paying his mortgage, the lender can take possession of the home with foreclosure. Foreclosure is a legal process which differs from state to state. A local loan modification attorney will be the right person to guide you in the matter and knowing your rights when it comes to foreclosure will help you a long way.
What is Foreclosure?
When the homeowner starts missing on the payments, the lender can take charge of the home to repay the debt owed on the property. The first step when the homeowner misses a mortgage payment is sending a written default notice which is a formal letter to inform the defaulter. The homeowner is given time to pay the mortgage amount with interest, penalty and attorney charges and other fees allowed by the state. The lender can go for non-judicial foreclosure or judicial foreclosure depending on the state. You can check the loan modification options that exist to know what suits you the best.
The Working of Foreclosure
Once the lender decides to foreclose, he will issue a notice of default at the office of the county where the home is based. This usually happens after the third mortgage payment is missed. But once it starts, it moves fast. In 10 days, the notice of default will be published in the newspapers and the same notice will reach you by mail within 30 days. When you receive the notice, you can contact the defense attorney for foreclosure to protect your interest.
The Notice of Default will keep you posted about the steps you need to take to rectify the defaulted mortgage. Usually, 3 months are given for this settlement or sometimes the lender can fix a date for sale and your house can be sold in the next month. After that, you will get 10 days to vacate the home.