How does the foreclosure process work?
We get a lot of questions about how the Foreclosure process works… or what can I expect to receive from the Mortgage Company and when? We will try and walk you through the process to hopefully help you understand what is going on and what might happen. We don’t have all of the answers and each case may be handled a little different, but we have done this for a long time and this is how a foreclosure will typically take place.
Notice to Accelerate
Once you miss your first payment the foreclosure process will begin… you will receive letters form the Mortgage Company telling you that they have not received your payment and please remit immediately. These types of letters will continue for 2-3 months if no payment is made. Once you reach the 60 day past due point you will receive a Notice to Accelerate from them. This will demand payment to bring the loan current. At this point they will not accept a partial payment… you must pay the entire delinquent amount plus any late fees. They will threaten you by saying if you don’t pay by a certain day they have the right to accelerate the due date of the loan and initiate the foreclosure. They will also tell you if they accelerate the loan attorney fees will be added to the delinquent amount. Click here to see a sample Notice to Accelerate letter.
The Demand Letter
If you do not respond with a payment by the date the mortgage company established in the notice to accelerate letter they will hire an attorney. The attorney will forward you what is called the demand letter. This letter is formal notice that if the loan is not brought current medially the foreclosure will be filed with the court system.Click here to see a sample demand letter.
The Notice of Default
If you do not respond to the demand letter to the attorney for the mortgage company will file the foreclosure with the court… this is called a notice of default. This Court document you should receive will list the entire debt amount that needs to be paid. It will also give you 20 to 30 days to respond to this judgment notice. Click here to see a sample Notice of Default letter.
The Notice of Sale
if you do not respond to the notice of default after the 20 to 30 period has expired the attorney it will file a notice of sale. This notice or sell will set a sheriffs auction date where your house will be sold at and auction. Click here to see a sample Notice of Sale.
This is the process to foreclosure will follow in a judicial foreclosure state. At anytime in this sequence, before the sheriff’s sale date, this process can be stopped or postponed. The bottom line is the mortgage company does not want to sell your house anymore than you want them to. They are not in the business to own real estate they make their money by you making your payments. They are willing to work something out with you the key is to come to an agreement with them with something that you can definitely afford.
Please tell us your comment on what you have experienced that may be different to what we have outlined. Your comments may help someone else that is in this process.
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IMPORANT NOTICE – PLEASE READ There is no guarantee you will receive a loan modification. Even if you accept this offer and use our service, your lender may not agree to change your loan. Loan Modification approval is dependent on criteria including but not limited to hardship, income, debt ratios. American Foreclosure Specialists is not a Bank, nor a government agency or government affiliate. Our services are not approved by the government or your lender. American Foreclosure Specialists assists in the document preparation, working with and communication with your Mortgage Bank in the attempt to acquire an approved Loan Modification. If you stop paying your mortgage, you could lose your home and damage your credit rating. Loan Modification Plans are dependent upon mortgage company criteria and financial information gathered as part of the efforts of AFS. The information and notices contained on this website are intended as informational and should not be regarded, as financial or legal advice. AFS attempts to ensure that the material contained on the website is accurate and complete at the date first published, however you should recognize that information contained on this website may become out of date over time. Readers who have particular questions regarding real estate law, finance, or who believe they require legal counsel, should seek the advice of a financial advisor or an attorney. Submitting a contact request, gives AFS consent to contact you by telephone and/or email, even if you have previously listed yourself on any state or federal Do-Not-Call List.