Questions And Answers About The Foreclosure Process And How It Will Effect Your Household

If you are in foreclosure, you are going to have many types of questions on your mind about what exactly is happening.  In this article, I'm going to go over some of the most frequently asked questions that people have when it comes to the foreclosure process.


What is Foreclosure?


Foreclosure is when a secured creditor begins to collect money that you acquired from them in order to obtain or refinance your home.  The foreclosure process starts when you do not have the money to pay them back and you have missed a couple payments on your mortgage.  The institution you borrowed money from will then take back what you borrowed money for, like your residence.


Can the Bank Kick me out of my residence?


Yes and no. They won't just come and kick you out at once.  There is a procedure within the court system that the mortgage holder must follow. Before they will come and evict you out of your residence, they must go through the entire foreclosure process. But eventually this can and will happen if you don't do something to stop the foreclosure.


How do I know if the lender will be foreclosing on me?


There is a process known as pre-foreclosure. This is the time where you will have indications that the bank is getting ready to start foreclosure. 

The process usually goes like this:

1.    Homeowner misses mortgage payment

2.    Lender sends late notice

3.    Homeowner misses one more payment

4.    Lender makes an effort to fix the situation in a notice or phone call

5.    No arrangements are agreed upon or homeowner avoids contact with lender

6.    Homeowner is late on another payment

7.    Lender then may demand that the total mortgage is paid in full

I just didn't make a couple payments, how can the lender demand that the whole mortgage be paid in full?


Under the Acceleration Clause, the bank can and will insist that payment be made in full if you miss a couple mortgage payments.  Most mortgages state that if you fail to pay the bank under the terms agreed upon, they can accelerate the mortgage, meaning the entire amount due.  If you missare late on mortgage payments, you will not only owe the amount in full, but also any interest and late fees.


I have already have not paide a couple payments, what is the exact legal foreclosure process?


1.    The lender mortgage holder will send a notice of intent to foreclosure delivered by a county sheriff or certified mail

2.    The lender mortgage holder then goes to the court system to ask for a foreclosure

3.    Legal notices are required by law to be published in local papers

4.    The period during which you could have paid the lender mortgage holder back to avoid foreclosure expires

5.    The court holds a hearing regarding the bank's claim that you did not paid them

6.    The court then issues an order allowing the lender mortgage holder to foreclose

7.    Legal notice of the actual foreclosure sale and advertisements will then be published in the local papers

8.    If no settlements have been reached by the homeowner and lender mortgage holder the house will go to auction and be sold to the highest bidder


Hopefully this answered all of your foreclosure questions, if you have more feel free to leave a comment and I will answer them.
Nick writes for the ForeclosureFish website, which gives homeowners the advice and resources they need to avoid foreclosure on their own and fight back against the bank's lawsuit. The site describes various methods to save a house, including foreclosure loans, deed in lieu, repayment plans, stopping a foreclosure sale, bankruptcy, and more. Visit the site on the web to read more about how you can avoid losing your house, repair your credit, and establish a long term financial plan once a temporary financial setback is over: http://www.foreclosurefish.net/