Foreclosure or Missed Payments.

More people are going into foreclosure or missing payments now than anytime in our history except for the Great Depression.  With the down turn in the economy many are losing their jobs and their ability to pay for their home.  Divorce and illness are also main reasons people miss payments and foreclosure is started by the lender.  However, today more than ever before the lenders are more willing to work with people in your situation.   We have specialized in helping people in your situation and if you want a free consultation feel free to call.  We will tell you how the process works and what you can and cannot do to either save or sell your home.

Foreclosure Process

Equitable Redemption Period:  This is the time from your first missed payment up to the time of the Sheriff Sale.  All you need to do to stop the foreclosure is to pay the back payments and interest and penalties.  This can be negotiated.

Once you have missed three to six payments you will get a letter from the lenders lawyers giving you thirty days to bring the account current or they will start the foreclosure process.

After 30 days the lawyer will place a foreclosure ad in a paper in the county your home is in.  This ad has to run once a week for six weeks.  At the end of the six weeks your home will be auctioned to the highest bidder at the sheriff sale.

Statutory Redemption Period:  This is from the time of the sheriff sale until the end of the redemption period.  To stop the foreclosure you need to pay the bid amount plus interest.  You will not be able to get a loan during this time so it makes this very difficult unless you sell.  Some lenders are still willing to work with you during this period.

Redemption times. 

Six months is the Normal length.

Five weeks if the property is abandon.

Twelve months, if you have paid 30 percent of your current mortgage, or own a farm over ten acres that was used to create income through crops or livestock.

Foreclosed:

At the end of the Statutory Redemption period the lender or who ever bid the most on your home will take it over.  This may not be the end of your problems.  If you had a second loan they can come after you for the money not paid them.  They do this in court in what is called a deficiency.  If you do not know about this the first time many people find out is when their wages are docked to pay this off.  If you do a short sale and the person that does this for you does not take care of the second this will also happen. 

When it comes to Foreclosure be very careful.  Give us a call so we can guide you through this trying time and make sure that everything is taken care of for you.  Call us for a free consultation or call with a question we answer all questions for free.