Many homeowners in foreclosure need to know what to expect in order to completely avoid and prevent foreclosure. This is the smartest way for homeowners to stop foreclosures, but the problem is that many homeowners think understanding how foreclosure works is difficult. It can be easy. If you try to understand the foreclosure process by diving into all the nitty gritty and legal aspects, it can seem overwhelming. But just understanding a simplified version can be very beneficial to the average homeowner and greatly increase your chances of surviving foreclosure altogether.
The foreclosure process will differ depending on which state you live in (whether it uses a judicial or non-judicial foreclosure process) and while there is a simple way to understand the exact foreclosure process in your state, here is a generic version;
1. When you are more than 30 days late, the lender will send you a notice of intent to foreclose if you don’t catch up.
2. If you do not make the payment required in this notice, they will send an official notice of default. This will determine either the auction day, court date, and/or other required amount of money usually consisting of the entire mortgage amount due.
3. If your state uses the court system, you will need to go to court to the lender to obtain permission to formally foreclose and go through the process. If you are in a state not using the court system, your home will either a) immediately be held for auction on the date on the notice, or b) if you do not pay the amount on the notice, you may receive a notice of sale and it will be the day they intend to auction off your home to recoup the money they initially lent you.
The above is very general – you do some simple research into your individual foreclosure process, then you will have a better understanding of the foreclosures timeline and therefore have a better chance of stopping foreclosures.