Foreclosure Process Questions and Answers And How It Will Effect Your Household

If you are in foreclosure, you are going to have a lot of questions on your mind about what exactly is going on. In this article, I’m going to go over some of the most frequently asked questions that people have when it comes to the foreclosure process.

What is Foreclosure?

Foreclosure is when a bank legally starts to collect money that you assumed from them in order to purchase or refinance your home. The foreclosure process starts when you do not have the money to pay them back and you have missed a couple payments on your mortgage. The bank you borrowed money from will then take back what you borrowed money for, like your residence.

Can the Bank Kick me out of my residence?

Yes and no. They won’t just come and kick you out right away. There are guidelines within the court system that the mortgage holder must follow. Before they will come and evict you out of your residence, they must go through the entire foreclosure process. But with time this can and will happen if you don’t do something to avoid the foreclosure.

How do I know if the mortgage company will be foreclosing on me?

There is a process known as pre-foreclosure. This is the time where you will have evidence that the lender is getting ready to start foreclosure.

The process usually goes like this:

1. Homeowner misses mortgage payment

2. Lender sends late notice

3. Homeowner misses one more payment

4. Lender attempts to fix the situation in a notice or phone call

5. No arrangements are agreed upon or homeowner avoids contact with lender

6. Homeowner misses another payment

7. Lender then may demand that the whole mortgage is paid in full

I just missed a couple payments, how can the lender demand that the whole mortgage be paid in full?

Under the Acceleration Clause, the lender can and will insist that payment be made in full if you didn’t make a couple mortgage payments. Most mortgages say that if you fail to pay the bank under the terms agreed upon, they can accelerate the mortgage, meaning the total amount due. If you do not make the mortgage payments, you will not only owe the amount in full, but also any interest and late fees.

I have already have not paide a couple payments, what is the exact legal foreclosure process?

1. The bank will send a notice of intent to foreclosure delivered by a county sheriff or certified mail

2. The bank then goes to the court system to ask for a foreclosure

3. Legal notices are required by law to be published in local papers

4. The period during which you could have paid the bank back to avoid foreclosure expires

5. The court holds a hearing regarding the bank’s claim that you have not paid them

6. The court then issues an order allowing the bank to foreclose

7. Legal notice of the actual foreclosure sale and advertisements will then be published in the local papers

8. If no settlements have been reached by the homeowner and bank the house will go to auction and be sold to the highest bidder

Hopefully this answered all of your foreclosure questions, if you have more feel free to leave a comment and I will answer them.

Bio: Nick writes daily articles specializing in how you can save your home from foreclosure while there is still time left before a trustee sale or eviction. Learn to defend the bank’s attempts to take your home, find a reputable attorney, delay a sheriff sale or eviction, qualify for a foreclosure refinance program, and put together a reasonable solution that will let you keep your property from being auctioned out from under your feet. Visit his site to read more about your options to avoid the loss of a home and understand more about how and why the American economy has been collapsing for several years now: http://www.yousaveforeclosure.com/