| The Foreclosure process begins if the homeowner | | | | the public auction. |
| fails to make payments of the money due on the | | | | Property owners have a right to reinstate a |
| mortgage at the appointed time. Foreclosure is the | | | | defaulted mortgage within ninety days of the |
| process that allows a lender to recover the amount | | | | personal service of the foreclosure complaint. If |
| owed on a defaulted loan by selling or taking | | | | interest-rate increases drive monthly payments too |
| ownership (repossession) of the property securing | | | | high and the property cannot be sold for enough to |
| the loan, and is a process in which the estate | | | | pay off the loan, many have just walked away and |
| becomes the absolute property of the lending | | | | let the lender have the property. |
| institution. Foreclosure is applied to any method of | | | | Foreclosure by power of sale is also allowed by many |
| enforcing payment of the debt secured by a | | | | states if a power of sale clause is included in the |
| mortgage, by taking and selling the property. | | | | mortgage. Property owners have thirty days after |
| Foreclosure is not only a costly experience for the | | | | the foreclosure sale is confirmed to retain possession |
| family losing a home, but can be a lengthy and | | | | and occupancy of the property, at the expiration of |
| expensive procedure for the loan investor, the | | | | which they must vacate. |
| servicer, and any insuring agency involved. | | | | If your mortgage is bigger than your house is worth, |
| The foreclosure process begins when a borrower | | | | you're looking at what's called a "short sale" and you'll |
| owner defaults on loan payments (usually mortgage | | | | owe money to the lender even after the house is |
| payments) and the lender files a public default notice, | | | | sold. And many of these borrowers now find that |
| called a Notice of Default. The foreclosure process | | | | their properties have lost value and cannot be sold |
| can end when the borrower/owner reinstates the | | | | for enough to pay off a mortgage taken out two or |
| loan by paying off the default amount during a grace | | | | three years ago. |
| period determined by state law. A foreclosure can | | | | Mortgage foreclosure is a tragic and traumatic event |
| make future loans very difficult and almost impossible | | | | for any homeowner. If you are having trouble with |
| to obtain. If it is possible to borrow some money in | | | | your mortgage payments and are worried about |
| order to ward of the foreclosure of your home, then | | | | losing your home, do not panic. Even if you are |
| hopefully you can come up with a realistic timeframe | | | | ninety days or more behind on your mortgage |
| for paying back their money. Normally, a foreclosure | | | | payments, foreclosure is not the only option. It might |
| will remain on your credit report for 7 years, while a | | | | come as quite a surprise to many that lenders will be |
| bankruptcy remains for 10 years. The lender can take | | | | willing to listen to why you are not able to make |
| ownership either through an agreement with the | | | | your contracted mortgage payments. Talk to your |
| borrower/owner during pre-foreclosure, via a short | | | | lender before it is too late. |
| sale foreclosure or by buying back the property at | | | | |