When the homeowner takes a loan and does not pay the mortgage amount for over three months the lender sends a notice to the homeowner to pay the amount within a specified time. If the homeowner fails to pay the amount foreclosure starts with the filing of a complaint in court or by recording a notice of default in the land records of the County. If the homeowner wants to loan modification restoration he must go to HAMP
Foreclosures can also be started by other parties who have a lien on the property such as the county if the taxes on the property are not paid. If the homeowner is interested loan modification specialist can help him to reset the loan.
How Foreclosures Work?
The working of the foreclosure differs from state to state. The process starts after several months of non-payment of mortgages. The lender sends a notice and goes to the county land recorder’s office and records a default. Once the default has been signed after many months of non-payment, the owner of the property after three months has the option of reinstating the loan or selling the property.
Many owners of the property sell within the three months, since it is their only option. After three months of non- payment if there is no attempt by the owner, the lender plans the Trustee’s sale of the property. The owner has 21 days to sell the property before foreclosure auction.
Ways in which Foreclosure auction works
In most of the foreclosure auctions there are no bidders from the outside and the lenders become the owners. This is a very good time to take an offer to the beneficiary for the property. It is best to approach the lender before he or she gives the property to the real estate agent for resale where there will be commissions on real estate sales. The property can be bought back at the time of auction, during default and before auction.
After three months of non-payment when the lender registers a complaint with the county the foreclosure proceeds start.