Foreclosure Process - Things To Know About The foreclosure law is different from one state to another in the United States. If you are constantly worried about making your mortgage payments meet then you should learn all about foreclosure process and asset protection in your area so you can plan a better payment scheme. Differences in foreclosure processes may range from how foreclosure notices are delivered to property owners, the scheduling of foreclosure notices and the redemption periods involved. Mortgage companies usually start to apply foreclosure processes to properties about 3 to 5 months after the missed payment this is because companies may still consider property owners who face difficulties in making ends meet. Late fees are often charged after 15 days. But having financial hardships is not an excuse for not contacting your lender. You need to stay in contact with your lender even when you have just missed one month payment of your mortgage. Staying in contact with mortgage company delays foreclosure proceedings but avoiding their calls and demand letters will only make matters worse. You can talk about an alternative solution for payment or ask for payment extensions should you think that you cannot process payment within the month or the provided period for payment. There are three types of foreclosure: judicial, power of sale and strict foreclosure. Judicial foreclosure begins when the lender files a suit to demand payment from the borrower. There are a certain number of days that the borrower has to respond otherwise his property will be sold in an auction which is carried out by a local court or county sheriffs office. Power of sale on the other hand happens after the borrower does not respond after calls and letters are sent out by the mortgage company. The property is auctioned by the mortgage company without judicial foreclosure. Auctions however are reviewed by the judiciary to ensure that both the legal rights of the lender and the borrower are observed. Finally, strict foreclosure which is only allowed by a small number of states in the US. When the borrower does not respond or fail to pay after the lender files a lawsuit the property goes back to the lender or the mortgage holder. This type of foreclosure is seen as the most appropriate approach when the debt amount is greater than the overall value of the property. Contact your local HUD office for more details about foreclosure processes in your area.
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