There are many financial responsibilities involved in owning a home. If you find yourself in a position where you can’t make the mortgage payments anymore, you face the risk of foreclosure. Fortunately, this is a process that you can halt anytime if you take the proper actions.
Understanding How the Process Works
You’ve received a letter from your bank stating that they’re foreclosing on your home. Unfortunately, you may not even understand the process and all it entails. Here are a few basic things that you should know.
You’ve Missed Mortgage Payments
Missing just one payment can be problematic for lenders. However, your actual problems start after you’ve missed 3 – 6 months of payments. Therefore, reach out to your lender as soon as you know you’re having a problem paying your mortgage. Some lenders will work with their clients to create a payment plan that’ll enable you to get back on track.
The Lender Creates a Notice for the Public
When you don’t work with your lender or you continue missing payments, they’ll file a public notice stating that you’ve defaulted on the loan. This notice is your warning that there’s a pending foreclosure and you should take specific actions to end it. If you don’t act now, the process will continue.
The Lender Starts the Pre-Foreclosure Process
Typically, you’ll have 30 – 120 days before the process continues. This is the pre-foreclosure grace period. You need to provide outstanding payments now or take part in a short sale. This means you agree to sell the property for less than the remaining mortgage.
The Lender Auctions off the Property
When you don’t take any action, a property auction occurs. This means the bidder with the highest offer will take ownership of the property. You can stop this from happening at any point up to the auction.
Getting the Help You Need
When you know that you’re having a foreclosure on your home, it’s time to get some legal help from the Weller Legal Group in Tampa, FL. We’ve helped many clients who faced this process and we look forward to helping you too.
Picture Credit: Crello
