Forclosure is the legal
process by which an owner's right to a property is
terminated, usually due to default. It typically involves a
forced sale of
the property at public auction, with the proceeds being applied
to the
mortgage debt.
1. How long does the foreclosure
process last?
It takes approximately six to eight months from start to finish
before you lose your home.
2. What is a Sheriff's Sale?
A Sheriff's Sale is a public auction of your home which takes
place at the end of the foreclosure process.
3. When do I have to leave
my home?
If you don't stop the Foreclosure Process prior to the Sheriff's
Sale and a sale does take place, you should move your family
and possessions out within two to three weeks after the sale,
if you do not want the Sheriff to evict you, your family, and
your personal belongings.
4. When can I stop the Foreclosure
Process?
You can stop the foreclosure process at anytime prior to the
Sheriff's Sale. At the time of the Sheriff's Sale, you lose
your rights and the legal title to your property. However, you
must never wait until the day of the Sheriff's Sale to start
protecting yourself. If you decide to save your property, you
will need to contact an expert at least a few days before the
sale so that he or she can prepare the documents necessary to
stop the sale. Hitchcock & Associates are dedicated to helping
people save their homes.
5. How can I stop the sheriff's
sale and foreclosure process ?
You can stop the Sheriff's Sale and Foreclosure Process by a
number of methods.
A.
Sell your property
You can sell your property. However, you will have to get enough
profit from the sale to pay off all the mortgage debt, as well
as the closing costs and the five to seven percent Real Estate
Broker's fee. Of course, then you will need to find another
home.
B. Refinance your home
You can refinance your home and pay off the mortgage. However,
often times lenders are unwilling to work with you unless you
have at least 30% or more equity in your property. Many times
lenders are unwilling to work with someone who has a foreclosure
on their credit report.
C. Reinstate your mortgage
You can also stop the sheriff's sale and foreclosure process
by paying the entire amount of the unpaid mortgage payments
that you are behind. As well as the bank's attorney fees, court
costs, mortgage interest, late charges and any other funds that
your bank may have forwarded on your behalf such as tax payments,
insurance payments, inspection fees etc. This payment can be
done generally anytime prior to the Sheriff's Sale and is usually
called redeeming or reinstating the mortgage. You will need
to get the redemption or reinstatement amount from your Mortgage
Lender's Attorney. However, don't wait until just before the
Sheriff's Sale to do this because it usually takes your Mortgage
Lender's Attorney's office a week to ten days to compile the
amount necessary for you to bring your loan current and stop
the Sheriff's Sale.
D. File Chapter 13
If you cannot get enough money together to redeem or reinstate
your mortgage, then you can contact an Attorney such as Hitchcock
& Associates and make an arrangement to stop the Sheriff's Sale
by reorganizing your Mortgage Payments and Fees you owe. You
can reorganize your debt by protecting yourself with the United
States Bankruptcy Chapter 13 laws which Congress enacted to
allow you to spread out your missing Mortgage Payments and fees
over an extended period of time (usually approximately two years)
while allowing you to again start making your regular monthly
mortgage payments.
6. Is it true that I can
be taken advantage of during the foreclosure process?
During the foreclosure process, you must be especially careful
of whom you seek help and advice from. You will receive dozens
of letters, some phone calls and even a few visitors to your
home claiming to be your new found best friend and the answer
to all your foreclosure problems. The truth is that there are
many people who, as sick and sad as it may seem, are just out
to take advantage of people in the Foreclosure Process. They
take advantage of anyone who is in a panicked situation and
might be vulnerable to a quick fix to their problems, which
in the long run, can be far more costly and disastrous than
first appears. "Borrowing from Peter to pay Paul" is never a
good idea. Additional debt is not the answer to your problems.
Also, many of these "friendly foreclosure helpers" want you
to give them the deed to your home in exchange for helping you
out. However, one must never give up their home ownership without
giving it serious thought and without seeking competent legal
advice. PLEASE don't jeopardize your home for a deal that sounds
too good to be true because it probably is. Be aware of your
rights before signing any agreements to refinance or sell your
real estate.
