What Happens If You Get a Foreclosure Notice?
October 30, 2019
In the event you receive a foreclosure notice in the email, it means you have fallen far enough behind on your mortgage payments your lender intends to take your house and sell it off unless you make up payments. Your lender can begin foreclosure if you miss one payment, but many creditors will send an overdue note initially and a note of foreclosure just when you default on several obligations.
A Last Chance
When a creditor sends a mortgage letter, the correspondence usually announces that foreclosure will start within 10 days, according to the Nolo legal site. If you discover a way to pay your creditor the late payments before afterward, and interest and any costs your account has incurred, which will usually block the process going any further.
The Lawsuit
If you can’t bring your payments current, the lender will go ahead and file the litigation. The lender’s attorneys then send you a summons and a formal legal complaint and provide you the time to respond, typically between 15 and 30 days. If you intend to resist the foreclosure in court, then you have to respond, or the court will produce a default decision, probably in the lender’s favor. Responding gives you the right to create a presentation to the judge on the reason you need to keep your property.
Another Letter
If the judge rules in favor of your own lender, the following step is going to be a letter notifying you of the date of purchase. In many states, you may still block the sale if it’s possible to collect enough money to repay the mortgage in full, and foreclosure expenses and other costs.
The Sale
In the event you don’t repay your debts, then the lender will place the house up for auction to the highest bidder. If it does not sell, then your creditor becomes the new owner, Nolo says. Up till that moment, you’re still the owner. It is going to usually take at least 3 months after notification before the house is sold, more if you fought the foreclosure actions.
Eviction
If the house is your private house, you may keep on residing there till you receive an eviction notice, even after the purchase. If the new owner does not ask for lease, you don’t have to pay to stay there. Once you have the notice, events will follow according to the eviction laws of your state.
Nonjudicial Foreclosure
In many states, such as California, lenders use deeds of trust, rather than a mortgage, to secure their claim on the house. If your creditor has a deed of trust, it doesn’t have to go to court to foreclose, and the entire process takes much less time.