Almost three million homeowners obtained foreclosure notices in 2009, according to Realty Trac. Half of those foreclosures occurred in just four states: California, Arizona, Florida and Illinois. The foreclosure process is rather simple, giving homeowners a few chances to bring their mortgage present.
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Once a borrower misses his payment, the foreclosure process begins. His mortgage lender will send a letter informing him that they haven’t received a payment and asking for that payment to be remitted immediately. They’ll continue this process for the next two to three months. Around the 60-day point, the borrower will be given a notice to accelerate, clearly outlining the lender’s aim to accelerate the due date of the loan and also to add attorney’s fees to the overdue amount.
Demand Letter
If the borrower does not respond to the notice to accelerate correspondence, the lender will employ an attorney. The attorney will send the borrower a demand letter, a formal note that in the event the loan is not brought current, the foreclosure will be filed with the court procedure.
Notice of Default
If the borrower won’t or can’t respond to the demand letter, the lender’s attorney files the foreclosure with the courtroom, a filing referred to as a notice of default. A copy of the document filed with the court is going to be sent to the borrower, record the entire amount due and committing her 20 to 30 days to answer the notice.
Notice of Sale
If the loan remains unpaid after 20 to 30 days, the lender’s attorney will record a notice of sale. At this point a date will be set for the borrower’s property to be offered at auction.
Never Too Late
Each step in the foreclosure process can appear daunting to the homeowner who’s experiencing them. It’s important to remember, though, that the process can be stopped or postponed at any point prior to the auction date being put. Lenders have no desire to own the house and know that they will lose money by selling it . Further, they know that the only way the loan is going to be profitable for these is if the borrower continues to make payments and pay attention rates. They’re prepared to utilize a homeowner who’s sincere about finding an agreement that works for both parties.