Debt Settlement Scams

A foreclosure does not take place without warning. In fact it will take around six months from the first missed payment. Without exception there is a legal process that must be followed. Below we chronicle the steps of an average foreclosure process to help you in determining if you run the risk of foreclosure.

Have you missed your house payment?
Should you be late with your loan payments then you are definitely at risk of your lender foreclosing. Ideally you will catch up and pay on schedule. This may be easier said than done but you really should make it a top priority and not avoid the situation. If you would like additional honest foreclosure information go to Loan-Modification-Masters.com to learn how you can get help.

You haven’t missed a house payment yet but afraid you might?
Was your financial situation altered due to a loan payment increase, loss of job, divorce, expensive health issues, increase in taxes or other reasons?

Is your credit card debt becoming out of hand?
Have you been using your bank card to purchase groceries?
Has it become hard to pay all your monthly bills on time?
If it seems to be more difficult to make your mortgage payment every month you should look for professional assistance. You can find many places to receive counseling for debt and financial issues. Not many people really believe they will lose their home, they think there is more time.

Although the time-line is not the same from state to state, essentially this is how a foreclosure goes:

First month missed payment ? your mortgage company will contact you by mail or call. You need to speak to them and always be polite and patient. Now it’s time to call a foreclosure specialist to learn what foreclosure programs are available to you.

The second missed payment ? your mortgage company is likely to start phoning you to learn the reason you haven’t made your payments. It is crucial that you take their calls. Talk to the mortgage company and inform them of your circumstances and how you are trying to change it. At this time, you could still be able to give them one payment to stop yourself from falling three months behind.

Third month missed payment ? after the third payment is skipped, you are going to receive a letter from you mortgage company stating the total you are behind, and that you only have 30 days to bring your mortgage current. This is called a “Demand Letter” or “Notice to Accelerate”. If you do not pay the required amount or make some type of arrangements by the stated date, the mortgage company could start foreclosure proceedings. They are unlikely to accept less than the full amount due without an agreement being made if you receive this letter. You still have time to work out something with your bank.

Fourth month missed payment ? this is near the end of time allowed in your Notice to Accelerate or Demand Letter. Once the 30 days is over, if you haven’t paid the entire amount delinquent or worked out an agreement you will be referred to your bank’s attorneys. You will incur all legal fees along with your back owed amount.

Next comes a Sheriff’s or Public Trustee’s Sale ? the lawyer will set up a Sale. This will be the actual day of foreclosure. You may be notified of the date by a letter, a notification is taped to your door, and the sale may be listed in your local paper. The period from the Notice to Accelerate or Demand Letter and the Sheriff’s Sale varies by state; it can be as soon as 2-3 months. This isn’t the move-out deadline, however you are nearing the end. You have until the day of sale to reach an agreement with your bank, or come up with the entire amount owed, along with lawyer expenses.

Redemption Period ? once the sale is over, you may have a redemption period. You will be notified of the time frame on the same form that your state issues your Public Trustee’s or Sheriff’s Sale.

Important: Remain in contact with the bank and get help as quickly as possible. All schedules are an estimation, and differ from stat to state and the mortgage company.