Understanding Home Foreclosure

 Most homeowners will be late with a mortgage payment. However, when they fall four to six months behind their lender may begin foreclosure proceedings.

Most lenders don't want to foreclose, and will try to find solutions to the problem. But if none can be found, foreclosure begins. The lender may file legal requests to end your ownership of the property. When notified by the court, you can pay the amount due or try negotiating with the lender. As a last resort, you can try selling the home yourself, but this option is difficult at best.

You are given a certain amount of time to vacate the home, usually one to eighteen weeks. The property is then repossessed and put up for auction. If any possessions are left behind, the new owner can file an eviction, giving him ownership of anything on the property. Law enforcement will then remove you and anyone else living in the home, if necessary.

However, you do still have some rights in this process. First is the right of notice, meaning the homeowner must receive adequate notice of default and the time and date of the foreclosure sale. Next is the right of reinstatement, giving the homeowner unconditional rights to reinstate the mortgage by paying the late amount before a predetermined deadline.

Another homeowner right is that of redemption, preventing foreclosure by letting the homeowner pay off the mortgage in full before the foreclosure sale. Many states also provide a statutory right of redemption for a period of time after the foreclosure sale. Last is the right to communicate, meaning the homeowner has the right to demand a reinstatement or payoff balance at any time.

If facing foreclosure, please consult an experienced attorney, but remember you are responsible for any legal fees incurred during the process.