Foreclosure is the legal process a lender initiates to force the sale of a mortgaged property when the borrower has not met the terms of the loan agreement.

Foreclosure processes are different in every state. Differences among states range from the notices that must be posted or mailed, redemption periods, and the scheduling and notices issued regarding the auctioning of the property. In general, mortgage companies start foreclosure processes about 3-6 months after the first missed mortgage payment. Late fees are charged after 10-15 days, however, most mortgage companies recognize that homeowners may be facing short-term financial hardships. It is extremely important that you stay in contact with your lender within the first month after missing a payment.

The U.S. Housing and Urban Development Department offers the following timeline of events involved in losing your home:

First month missed payment – your lender will contact you by letter or phone. A housing counselor can help.

Second month missed payment – your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind. A housing counselor can help.

Third month missed payment – after the third payment is missed, you will receive a letter from your lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a \”Demand Letter\” or \”Notice to Accelerate.\” If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender. A housing counselor can still help.

Fourth month missed payment – now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full amount or worked out arrangements, you will be referred to your lender\’s attorneys. You will incur all attorney fees as part of your delinquency. A housing counselor can still help you.

Sheriff\’s or Public Trustee\’s Sale – the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states, it can be as quick as 2 to 3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees.

Redemption Period – after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff\’s or Public Trustee\’s Sale.

Anna Cuevas is America\’s Loan Mod Guru, she has provided experienced insight and expertise to save over 300 families from losing their home to foreclosure, and has successfully returned 14 homes back to homeowners on the verge of eviction after their trustee sale was completed. For more information and resources, visit askaloanmodguru.com.

Anna Cuevas is America\’s Loan Mod Guru, providing experienced insight and expertise to save over 300 families from losing their home to foreclosure, and has successfully returned 14 homes back to homeowners on the verge of eviction after their trustee sale. For information visit http://askaloanmodguru.com.

Author Bio: Anna Cuevas is America\’s Loan Mod Guru, she has provided experienced insight and expertise to save over 300 families from losing their home to foreclosure, and has successfully returned 14 homes back to homeowners on the verge of eviction after their trustee sale was completed. For more information and resources, visit askaloanmodguru.com.

Category: Real Estate
Keywords: loan modification, morgage,Notice to Accelerate,eviction,redemption,foreclosure