Avoiding Foreclosure
Getting a foreclosure letter in the mail can be a terrifying experience–within a matter of seconds it can feel like your world got turned upside down as you think about the idea of losing your home. However, it’s important to know that receiving a foreclosure letter in the mail does not automatically mean you have lost your home. As a homeowner, you have options when it comes to foreclosure that can help you keep your house. Understanding these options can help alleviate your panic so you can begin taking steps to save your home.
The Foreclosure Process
First, it’s important to understand how the foreclosure process works. Every state has specific foreclosure rules that must be followed when it comes to taking a home. Some states use the court system for the foreclosure process, while others don’t have to or it is optional. However, when you fall behind on your mortgage payments, there are a few steps of the foreclosure process that are common no matter where you live:
- Pre-foreclosure: This is when you are alerted by your lender, often through letters or a phone call, that you are behind on your mortgage payments.
- Foreclosure Notice or Summons and Complaint: If you still don’t make your payments and fall further behind, your lender will likely begin the actual foreclosure process. Depending on the laws in your state, you will get some type of official notice from your lender that they have initiated foreclosure against your home. At this point, you have a specified period of time, (often 90-120 days) to make your payments. If you were given a summons and complaint, you have the chance to respond and explain why your payments were not made and why the foreclosure process should not continue. Then the court makes a decision.
- Auction or Foreclosure Sale: If payments for the mortgage are not received within the time given, the lender will move forward with the sale of the home. Notice will be given of the sale, and then the home will be auctioned off to the highest bidder.
- Redemption Period: In some states, after your home is sold, you have some time to buy it back or “redeem it.”
Homeowner’s Rights
As a homeowner, you have rights throughout the foreclosure process. You have a right to:
- be notified of a pending foreclosure by your lender–it can’t be a surprise
- catch up on late payments
- you may have the right to explain to a judge why your payments are late and that the process should stop
- redeem your property (in many states)
If you think your rights as a homeowner have been violated or the foreclosure process has not been properly followed, you should speak to an experienced foreclosure attorney.
Talk to An Experienced Foreclosure Attorney
Understanding the legal specifics of the foreclosure process can be overwhelming. This is why having the assistance of a skilled foreclosure attorney can be very helpful. The role of a foreclosure attorney is to:
- Help you understand the foreclosure process and determine possible solutions in your case
- Identify alternative outcomes and negotiate with your lender (such as lower payments)
- Help defend you in court when necessary
- Prepare and file for bankruptcy if needed to avoid foreclosure
Trying to face foreclosure on your own can be a daunting task–even simple mistakes or missing deadlines can put your home at risk. But having an attorney by your side as you fight against your foreclosure can help you feel calm during an already uncertain time.
If you have received notice of a foreclosure against your home, Don’t panic and don’t wait to seek legal advice. Contact a foreclosure lawyer as soon as possible so you can take advantage of the options available to you to save your home.