When you (the house owner) miss mortgage payments, you can expect the bank or the lender to start a foreclosure process soon. So basically, foreclosure is an act of the bank or the lender to take possession of the house from the owner by forcing him/her to move out legally.

 

Every state has its own rules about foreclosures so make sure you are familiar with your state's court laws are and how the process is arranged.

Also, know  that a bank usually gives more time for an evacuation notice than what the state provides. So if the state gives a three-week evacuation notice then the bank will probably give a  five-week evacuation notice.

 

Well, if you think about it, the bank much prefers to resolve this issue with you.  The bank wants to start to receive monthly mortgage payments as fast as possible rather than going forward with the foreclosure action which is time consuming and costly.


However, foreclosures happen and have been happening a lot in the last few years, but it is a last resort to turn to as a necessary business decision to make.

What’s Next?

After several weeks (5-7 weeks) of defaulting on your loan, the lender will start communicating with you (the defaulted borrower) by sending letters and then making phone calls asking for their money. And if there is no response or cooperation yet then the phone calls become more frequent and constant but with certain limits that the state you are living in has implemented.


As I mentioned in the beginning that each state has different rules about foreclosures and one of them is for the bank to follow certain guidelines about when to call and how often.

All states agree that there should not be a tone of threat during the phone calls and there are time restrictions which do not allow them to call late at night and an unreasonable time in the morning and so on.

 
Something to Know!

 
While you are living in the house legally during the pre-foreclosure process and are not forced out yet, maybe it is a wise move to keep staying in the house and not move out yet, because if you are seeking help from other lenders, they will be more likely to assist you.

Prevent Foreclosure…Suggested Steps


Talk with the Lender

To prevent foreclosure on the house you need to be to act as quickly as possible and as early as possible in the preliminary period of the foreclosure process.

Keep the communication open between you and the lender no matter how unpleasant the experience will be, for maybe solutions can surface and an agreement might be reached. Remember, that the bank will proceed with foreclosure if there is no communication or cooperation from the other end of the table.

 Your Local Housing Agency

If you feel that you need a professional person to do the talking with your lender or help you to  go through this problem then go to your federal or state local housing agency and make an appointment with a counselor which is usually free of charge.

 
Bring your house mortgage documents and be ready to listen and discuss the other choices. A counselor will help you evaluate your financial condition, establish what options are obtainable to you, and help you negotiate with your bank/lender.

You can find a local housing agency by visiting <a href="http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm">Housing and Urban Development</a>. 

Related Topics

Click here to read about   Buying Foreclosure

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