What is foreclosure?
Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.
How long do I have to act?
Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. We have encountered many homeowners who did not even know that they had already lost their house!
Several companies have contacted me recently offering to help. What's different about you?
There are many predatory companies who are not what they appear to be. Beware of unscrupulous companies who are actually just interested in buying your house at big discount, or attorneys who just want to take you into bankruptcy or companies that collect a consultation fee all upfront then do nothing for you. We are very proud of our track record of satisfied customers. They are strong evidence that we deliver on our promises.
Do I have enough time to stop my foreclosure?
Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. You're best option is to take action immediately to stop foreclosure before it goes too far.
Why would a lender accept less than their payoff in order to facilitate a sale of the home? Why would a short sale be preferable to a lender than foreclosing on the subject property?
Foreclosure is an expensive process for a lender. Banks are in the business of making loans, in general they don't want to possess the property. You also must remember that not only is foreclosure a long and arduous process for the bank but it also costs money. If the lender goes through the entire foreclosure process significant costs will accrue including posting the notice of foreclosure and advertising the foreclosure sale.
What does "Acceleration Clause" mean?
It means that once a borrower is in default, the lender can choose to demand payment of the entire balance of the mortgage in one lump sum.
What happens to the property if the lender goes through the entire foreclosure process and no one bids on the property?
If no sale occurs the lender will have to pay not only the advertising and notice fees but they will also be responsible for attorneys fees, trustee's fees, and title insurance. The lender will then be forced to possess the property which will require them to pay for repairs, maintenance, hazard insurance, and property taxes. Furthermore the lender will have to sell the property which will require them to pay not only real estate commissions but also closing costs.
What does a notice of default mean?
A Notice of Default (N.O.D.) means that the bank has contacted an attorney and the foreclosure process has begun. They have set a date at which your home will be auctioned off at a public auction to the highest bidder.
What's the difference between Judicial Foreclosure and Non-Judicial Foreclosure?
Judicial Foreclosure means that the lender has to go to court to foreclose. Non-Judicial Foreclosure does not require the lender to go to court. This is because the loan instrument the borrower signed contained a power of sale clause, or the instrument is a Deed of Trust. A power of sale clause means that the borrower authorized the lender to sell the property to pay the loan if the borrower defaulted.
What does "Lis Pendens" mean?
It is a Notice of a Pending Lawsuit and one of the initial a step the lender takes on the path to foreclosure.
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