Show Endnotes Hide Endnotes. What to expect if you miss mortgage payments If you fall behind on your mortgage payments, the bank can only foreclose if they give you the right notices, record the notices and publish the auction in the newspaper. They must: Give you a Right to Cure Notice that says you have a number of days to catch up on your payments.
If you catch up with the overdue mortgage payments, they will not foreclose. Give you a Right to Modify Notice. Sometimes the bank must notify you that you have a right to ask the bank to change the way you pay back your loan. Changing the way you pay back your loan is a modification. If you have the right ask for a modification and your income is low enough, the bank may have to give you a modification. Give you an Acceleration Notice that tells you the full amount of your loan is due and if you do not pay it, the bank will foreclose.
Banks must give this notice to everyone they are starting to foreclose on. How Foreclosures Work. Investing in Foreclosures. Foreclosure Terms A-O. Foreclosure Terms P-S. Foreclosure Terms T-Z. Home Ownership Mortgage. Table of Contents Expand. Phase 1: Payment Default. Phase 6: Eviction. The Bottom Line. Key Takeaways Foreclosure occurs when a lender seeks to seize the property used as collateral for a loan due to failure to pay.
There are typically six phases in the foreclosure process and the exact steps vary state by state. Before a home is foreclosed on, owners are given 30 days to fulfill their mortgage obligations. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Related Articles. Partner Links. Foreclosure is the legal process by which a lender seizes and sells a home or property after a borrower is unable to meet their repayment obligation.
Decree of Foreclosure and Sale A decree of foreclosure and sale is a statement issued by a court indicating that a piece of property is to be sold when a mortgage has gone into default. What Is Forbearance? Forbearance is a form of repayment relief involving the temporary postponement of loan payments, typically for home mortgages or student loans.
Jack and Georgia go through a foreclosure. Typically, if a sale has excess proceeds, the trustee or other sale officer has to send a notice to the foreclosed homeowner's last known address. But the last known address is usually the foreclosed property. Because most people don't realize they're due any excess proceeds, they tend to vacate a foreclosed property without leaving a forwarding address.
So, it's difficult for a trustee or other sale officer to find foreclosed homeowners after a sale. Because a sale might generate excess proceeds, it's a good idea to track the process.
You should take note of the sale date, which will be included in the foreclosure documents you receive. After the auction, contact the trustee or officer that sold the property. This information, including the trustee or officer's name and phone number, should also be in the paperwork you received during the foreclosure, as well as in your local newspaper's legal section where the sale notice was published.
If you can't figure out who conducted the sale or how to contact that person, call your loan servicer. Ask if the auction generated excess proceeds. Also, ask what you need to do to claim your share, if any, of the proceeds.
If you need help recovering the excess proceeds after a foreclosure sale, consider talking to a lawyer. If you can't afford to hire a lawyer, you might qualify for free assistance from a local legal aid office. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
The attorney listings on this site are paid attorney advertising. One sign of a scam is when they ask for a fee in advance.
Learn how to spot housing scams and report housing scams. Find out how to detect, report, and protect yourself against these scams. Get reliable foreclosure help and counseling through the government's Making Home Affordable program. Or find a government certified housing counselor near you. Read more about foreclosure scams and find phone numbers to call for help. Learn about your legitimate government-approved mortgage and foreclosure help options.
0コメント