What is Foreclosure and the Foreclosure Process?

According to Wikipedia, "Foreclosure is the legal proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption."

In a July 2008 U.S. Foreclosure Market Report released August 14th, 2008 from RealtyTrac, a leading online marketplace for foreclosure properties, it shows: ".....foreclosure filings - default notices, auction sale notices and bank repossessions - were reported on 272,171 U.S. properties during the month, an 8 percent increase from the previous month and a 55 percent increase from July 2007. The report also shows one in every 464 U.S. households received a foreclosure filing during the month.

To put it into simple language, mortgage foreclosure is the process a bank or mortgage company uses to take back ownership of your home because you have failed to make your house payments at the appointed time. You are called the creditor and are supposed to pay the installment or mortgage payment every month without fail to your mortgage lender. In case of default your mortgage is considered delinquent and proceedings would be initiated for take over of the home. Foreclosure is basically selling your property, usually by auction, terminating all your rights in that property and evicting you from the premises.

The foreclosure process can differ depending upon the state you are in. The process begins generally when your loan payment becomes 30 days overdue. At some point here, your mortgage lender may try to contact you to work out a repayment schedule to bring your loan current. Do not ignore this attempt by your lender. With the amount of foreclosures today, more time is granted before you may be contacted. Keep in mind, the mortgage company is likely to begin foreclosure procedures within the next sixty to ninety days. As your mortgage payment becomes even more past due, the collection calls will come on a more consistent basis. Again, do not ignore this attempt by your lender. If your payments fall 90 days behind, the mortgage company will send a letter of notice, called a Notice of Default (NOD) and has the option then to turn your mortgage over to an attorney that will start the formal foreclosure process. Remember, the foreclosure process varies from state to state, so do your due diligence in researching information about how the foreclosure process is handled in your state. A good place to start is with a local attorney. Many times this information is free.

The lender must serve you a notice of default on the home after a certain time period based on the terms of your mortgage agreement from when the payment becomes past due. Again, this time period varies by state. The notice will give you a specific time period and the amount necessary to be paid in order to restore the default and avoid foreclosure. If you cannot pay the past due amount and foreclosure costs within this time, then your lender will set a foreclosure sale date. Your lender will then sell the property at public auction and with the proceeds from the sale going to the payments owed the mortgage holder.

If the sale price is not enough to cover the outstanding debt and the costs associated with the sale, the mortgage lender will most likely pursue a deficiency judgment against you. This action will be a court order that requires you to pay the remaining balance to your lender.



Credit Secrets Bible ! The #1 Credit Course In America Click Here!

Everything You Know Is Wrong! About Being Debt Free That Is!! And It Will Keep You In Debt The Rest Of Your Life! Click Here!

Credit Repair Secrets Revealed! Credit Repair Is A Hot Topic Click Here!

Guaranteed Bad Credit Financing. Receive A Loan Or Credit Card Even With Bankruptcy!
Click Here!

Living On A Dime - Financial Independence Through Better Life Choices. Publisher Of E-books About Paying Off Debt, Saving Money, Frugal Cooking And Homemaking. Click Here!

Eliminate Debt Fast Without Bankruptcy Or Debt Consolidation. Click Here To Learn The Amazing Secrets Of How I Got Rid Of $63,000 Of Debt In Only 4 Months Without Filing Bankruptcy Or Using Any Type Of Debt Consolidation Service! Click Here!

My Miracle Loans Learn How To Easily Borrow Up To $1 Million Cash In Less Than 7 Days All With No Credit Check, No Collateral, No Proof Of Income, And No Interest Fees! Click Here!

Bad Credit Personal Loan Source. Bad Credit Personal Loans Regardless Of Bad Credit - Up To $25,000. Click Here!