Frequent Mortgage & Foreclosure Questions

 

What is Foreclosure?

 

Foreclosure is the legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default.

 

What is a Notice of Default?


After you become 90 days late on your mortgage the bank, an attorney, or local sheriff issues a Notice of Default (NOD) to the homeowner as a certified letter. The NOD outlines homeowner debt and last-ditch remedies for reinstating the mortgage. The NOD will be recorded with a local government agency and a date is selected for a foreclosure auction.

 

How does the Foreclosure Process Work?


The The first level of foreclosure is called the pre-foreclosure process. This is when you miss a payment and you are notified by your lender that you have 30 days to pay your past due amount in full. This will most likely include late fees. Depending on your lender you may receive calls, letters and even a letter of intent to foreclosure. You have many options avaiable to you at this time. Speaking with your lender or a housing counselor is very important.

After you become 90 days late on your mortgage the bank, an attorney, or local sheriff issues a Notice of Default (NOD) to the homeowner as a certified letter.The NOD outlines homeowner debt and last-ditch remedies for reinstating the mortgage. The NOD will be recorded with a local government agency and a date is selected for a foreclosure auction.The final step is a Sheriff's or Public Trustee's Sale. The lender's attorney will schedule a sale of your property. During the auction or sale if no bids are received higher than the opening bid, the lender purchases the property and puts it back on the market.

This is obviously something the lender wants to avoid. Fill out the form above or call to get a consultation on how parnters in our network may be able to negotiate a better mortgage and save your home.

Can I give my lender the deed to my house instead of foreclosing?

This option may be available, but in most states the lender can still sue you for the difference between what it sells the house for versus what you owe. Thus, this is not an attractive option unless you can get your lender to agree, in writing, to not sue you for the difference. Similar to short sales, this option typically isn't available if there is more than one mortgage on the property unless the additional mortgages are held by the same lender.

 

What is a Loan Modification?


A loan modification is a change in your mortgage terms to bring your monthly payment down. A bank may consider a loan modification in hopes of avoiding foreclosure.

Who qualifies for a loan modification?


Homeowners facing certain financial hardships may qualify for a loan modification. Qualifying for a loan modification is tricky and needs to be processed correctly to avoid rejection. A financial hardship can be many things such as: job loss, loan payment increase, decrease in income, divorce, medical expenses and even negative equity.

Can I do any of this myself?


Yes you can. Working with a professional that understands programs available may help you through the process. Let a professional in our network help guide you in the right direction. The government also offers free foreclosure and mortgage assistance programs through it's Making Home Affordable Program.

Why should you work with a professional?


While it is possible for a homeowner to perform all the steps required in modifying a loan, it is highly recommended that you work with a qualified professional. In short, loan modification is a very complicated process where all the required steps must be taken strictly as stipulated. Working with a qualified professional may solve all the headaches associated with a loan modification.

Is this a government website?


No, this is not a government website. We work with professional loan modification and foreclosure prevention experts that may be able to help you avoid foreclosure.