Real Estate Foreclosures » Mortgage Foreclosure: How Long Until It’s Over?

Mortgage Foreclosure: How Long Until It’s Over?

Posted on November 10, 2008
Filed Under Foreclosures | 5 Comments

It is very scary when you can no longer make your mortgage payments and know your home is at risk of being put in foreclosure. Thousands of people across the country are facing this crisis, and if you don’t understand the process and know what to expect it can be even scarier. It’s time to educate yourself so even if you can’t prevent your home from being taken, you can know what is about to hit you and how long you might have to get out of your home.

Let me say up front that it is not possible to give the exact details for your particular situation because the foreclosure laws vary from state to state. It is a good idea to do your homework and learn all you can about the laws particular to your state, or talk to a professional who will know this information and share what should be a concern to your situation. Yet, there are some common features that most states share and that will be discussed here as a starting point.

The first step in the process is default. This is where you get behind on your payments. The loan will normally stay in default for ninety days and your lender will contact you to let you know that your loan is behind. They will give you an opportunity to pay the overdo balance, and if you can pay it then you prevent foreclosure, but most people in this situation cannot. If they could pay it, likely it would not be in default to begin with!

Next, the lender goes to court and files a “notice of foreclosure.” This means that they state their intention to foreclose on the property. It is important to know that these court records are public record and there is no way to prevent others from seeing it. This means you will get a lot of mail from companies offering to refinance your home or help you in other ways. Be very skeptical and cautious with these companies because many of them are looking to pray on your hardships and vulnerability. It is best to go to a company you know is legitimate if you wish to find another lender, or simply work with your lender to find a solution if possible.

Depending on your state law, it could take anywhere from two months to a year from the filing of the notice to the sale of your house. By challenging the court procedures, you can extend the length of time you may remain in the house. Challenging in court usually will not prevent your home from being auctioned off, but it will often give you more time to find somewhere else to move to.

If you live in a “judicial” state, you will have more time to prepare because the lender must retake ownership of the title through court first. If you live in a “nonjudicial” state, they can auction off the property without doing that and you have less time to prepare.

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5 Responses to “Mortgage Foreclosure: How Long Until It’s Over?”

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