The Foreclosure Process: You Can Stop It Anytime- By: John Cutts
Despite the foreclosure moratorium and mitigation schemes offered by various entities, the foreclosure process is being replicated in cities, towns and counties across the country.
Mortgage banks naturally want to recover as much money as they can from the loan that they provided to the homeowner, so they let the foreclosure process follow its course. The goal is to get back the house free as soon as possible for sale to the highest bidder before the foreclosed house becomes dirtied and damaged.
At any point in the foreclosure process, you can go to your mortgage lenders, show them the money and the process will stop. But only for a while. You have to pay them the next amortization, or the foreclosure process will move again.
Mike Himes, a housing counselor for the nonprofit group NeighborWorks Homeownership Center in California, says that troubled homeowners need to be realistic about their ability to pay. He says that there have been many borrowers who have swiped their cards for $20,000 on their credit cards only to be forced out of their homes later on.
According to Debra Zimmerman, a lawyer with the nonprofit legal service provider Bet Tzedek Legal Services in California, the best move for you if you do not have money to pay the next amortization is to call your mortgage lender weeks before your due date.
If you have not made your payment the day after your due date, you are already considered delinquent. Usually, you have a grace period of up to 15 days to pay your due.
The day of the first call from your mortgage bank will depend on your payment history. According to Wells Fargo Home Mortgage executive Joe Ohayon, if you frequently pay in the middle of the grace period, you will not be called before that point. If you have been a good payer, the calls will just be reminders and not direct collection calls.
On the 30th day of default, the lender can send you the notice of default. But if your loan was taken between 2003 and 2007, your lender must contact you or visit you at least a month before sending the foreclosure notice.
When finally you receive your notice of default of foreclosure, you still have 90 days to negotiate with your lender to save your foreclosed home. You could still negotiate a loan modification, a short sale or a temporary moratorium. But when not one of these options pushes through, the painful foreclosure processes come after another like clockwork: the notice of sale, the notice to quit, the notice to vacate and the sheriff’s visit if you refuse to move out.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.