Are You Facing Foreclosure?

Your lender uses your home as security for your mortgage payments. This means that if you stop making the payments, they could take your home. The process they use to take your home is called foreclosure. 

If you are behind on your payments, it is essential that you act fast if you want to prevent foreclosure and save your home. 

What should I do if I'm behind on my mortgage payment? 

Call your lender.   If you are behind on your house payment you should contact your lender.  Most lenders don't want you to lose your home.  Tell them about your situation which justifies why you're behind on your payments.  Ask them to work with you in order to get your payments up to date. 

Don’t ignore letters from your lender.   Let them to know you have received their letters and that you would like to work with them.   

How your lender can help  

Your lender may accept a mortgage payment plan for the back payments or give you extra time to pay the loan.   

What if my lender won’t help? 

You still have other alternatives: 

Contact another lender.   Ask if they can give you a new loan to pay off your current mortgage.   

Sell your home.   You may get enough money from the sale of your home to pay the loan off and even have money left over.   

Talk to a lawyer.   Ask if filing bankruptcy could help you keep your home.   

The foreclosure process 

Foreclosure starts when you get a Notice of Default in the mail from your lender.  The Notice of Default notifies you that you have not made your payments.  It also tells you the amount you owe in missed payments and foreclosure fees. 

You have 3 months from the date the Notice of Default is recorded to pay them back the payments and fees.  Usually, you can locate the date the default was recorded on the first page next to the words “recorded on”.  If you pay the amount on the Notice of Default, the lender cannot sell your home.   

When could they sell my home? 

If you don’t pay the amount owed within the 3 months period, your lender can sell your home.  Before they sell your home, your lender must mail you a Notice of Sale.  The Notice of Sale will include the date, time, and place your home is to be sold.  The notice of sale must be mailed to you at least 20 days prior to the day they plan on selling your home.   

How do I stop the sale of my home? 

You could still be able to stop the sale of your home if you pay the amount due, containing fees, up to 15 days before the sale date. 

If you wait until the last 5 days before the sale, you will have to pay the entire loan amount, if you want to recover your house. 

When you pay, the lender must record a Notice of Rescission.  This proves that the sale of your home has been cancelled.   

Watch out for scams!   

Avoid people who promise to end foreclosure by having you transfer title of your property.  Transferring ownership doesn't stop the foreclosure.  You will still be responsible for the money you owe even if you no longer own the home.  Also, it will not stop the foreclosure record from showing up on your credit report.