Foreclosures and What you NEED to Know

Even if you aren’t facing foreclosure yet, are you suffering from financial
difficulties that may result in it? If so, now is the time to familiarize yourself with the process. Foreclosure can be scary for homeowners, but
you can protect yourself by knowing what'll happen, what you can do, and
what your rights are.
Mortgage lenders are often banks, and they must and will provide you with
proper notice. In fact, you will receive multiple written notices and
telephone calls. Foreclosure should not come as a surprise to you.
Neither should the eviction notice that may later arrive. As soon as you
start receiving calls or letters from your financial lender, it is important
to take action. As for what action you should take, that leads to another
important fact.

Banks want to avoid foreclosure just as much as you do, many homeowners are
actually surprised to learn this. Many times, financial lenders lose money when selling a foreclosed property, for that reason, you should speak
directly with your financial lender. When doing so, have this meeting in
person and meet with a high-ranking official, such as the chief loan offer
or the branch’s president.

Since banks want to avoid foreclosure whenever possible, it's important to
go into detail about your financial situation. Are you only experiencing temporary problems? For example, did you suffer an injury that will put you
out of work for a few months? Were you laid off, but are you actively
looking for a job now? If so, your financial lender may be willing to work
with you. If you can prove that you have intent to get your mortgage back in
good standing, your lender may temporarily accept smaller payments.

As for the foreclosure proceedings themselves, the process will all depend on
the state in which you reside. Unfortunately, this is a fact that many facing
foreclosure do not know or do not take into consideration. If you intend to
seek professional help, from either a housing counselor or an attorney, it is
important you choose a professional who is familiar with your state’s laws on
foreclosure, as they do vary.For example, in New York, judicial and non-
judicial foreclosures are permitted by law. A judicial foreclosure is where
the lender must file an official complaint against the borrower, which would
be you. This complaint must be approved by the local courts. A this point in
time, the borrower may be given one more opportunity to pay the amount in
delinquency, if not the property will be sold.

As for non-judicial foreclosures, financial lenders must have entered a
specific clause in the mortgage agreement. This clause states that the
borrower, which would be you, authorizes the sale of the property when
delinquency occurs on payment. Typically, non-judicial foreclosures are not
used often and some states even prohibit them. That is why it is important to
know all of your state’s foreclosure laws.When the foreclosure process has
started, now is the time that you should start looking for other arrangements.
Unless you can come into a large amount of cash and rebuy your home, you best
option may be to move. Although you are not required to leave your home until
you are served an eviction notice by the lender or new property owner, it is a
process that you should start planning and preparing for. Where do you want to
live? If you will rent an apartment, how do you intend to pay for the security
deposit? These are questions that you need to have answers to.

As a recap, foreclosure laws vary by state, banks want to avoid foreclosure and
multiple notices will be sent. For that reason, foreclosure should never come as
a surprise. For more information on foreclosures, contact a HUD (United States
Department of Housing and Urban Development) approved counselor, your lender, or
an attorney, but do so right away.