What Happens If You Stop Making Mortgage Payments

Foreclosure is something most people rather don’t want to deal with. When a person is confronted with foreclosure, they're facing losing their home. Foreclosure is the last step a lender takes after an individual has stopped making mortgage payments. When a person reaches foreclosure there is little they can do to stop it.

Foreclosure starts after the lender has exhausted their attempts to get payment.  Normally this doesn't happen after one missed payment on mortgage, but instead is caused by repetitive skipped mortgage payments.  The lender has the right to take possession of the home through the procedure of foreclosure as stated in the loan contract. 

This is because to safe the loan the home was placed as collateral.  This means that if the person fails to pay for the loan the lender can have their home. 

At this time the process of foreclosure begins.  It could take about 2 to 3 months until it is completed.  The foreclosure process starts with letters or calls from the lender demanding the past due payments.  Upon continual cooperation from the homeowner, the bank will then start legal proceedings for the foreclosure. 

The bank will file a complaint with the court and the homeowner will be served papers.  If the homeowner does not answer the court will rule in favor of the lender.  Even if you do show up in court or serve an answer to the complaint the court will not generally accept any excuses except that you don't owe money. 

Following the court proceedings, the title to the home is auctioned off.  The lender usually will take ownership and you will then be required to vacate the home.  If an individual refuses to leave then the sheriff is called in to remove them from the home.  The person will no longer have any legal rights to be in the home. 

The only way to stop a foreclosure sale is to file bankruptcy.  The bankruptcy must be filed before the actual sale.  However, filing bankruptcy will jeopardize a person’s credit. 

If a person would really like to keep their home, they must seriously try to find another way for avoiding foreclosure before the process even starts.  Foreclosure is not a pleasant process and can be very demanding to an individual. 

Once a home loan reaches the foreclosure stage it generally is really hard to turn things around and save the home.  A foreclosure is a serious bad mark on a credit report and could avoid a person from obtaining any credit extensions in the future. 

Before a home gets to be foreclosed a person must try their best to work out a solution with their lender.  It is best to avoid foreclosure if at all possible.  Not only will an individual lose their home, but they will also put their credit at risk if they proceed through a foreclosure.