Your lender makes use of your home as retreat for your mortgage payments. The procedure that they make use of to take your home is known as foreclosure.
If you are late on your payments, it is significant that you act rapidly to avert foreclosure.
What I ought to do if I am late in my house payment,
Contact your lender. Majority of the lenders do not wish you to lose your home. Let them know why you are late in your payments.
Never disregard letters from your lender. Let them know you have got their letters and that you wish to work with them.
How your lender can assist
Your lender may agree for a payment plan for the back payments or provide you additional time to pay the loan.
What if my lender wont assist,
You still have choices –
Call some other lender. Request if they will provide you a new loan to pay off your present mortgage.
Sell your home. You may get adequate money from the sale to pay the loan.
Talk to a solicitor. Enquire if filing for bankruptcy can assist you save your home.
The foreclosure procedure
Foreclosure starts when you get a Notice of Default in the mail. The Notice of Default lets you know that you have not made your payments. It also lets you know the amount you are indebted in missed payments and foreclosure fees.
You have three months from the date the Notice of Default is logged to pay the back payments and fees.
When can they sell my home,
If you dont pay the amount payable in three months, your lender can sell your home. Prior to they sell your home, your lender must mail you a Notice of Sale.
How do I stop the sale of my home,
You can pay the amount, comprising fees, up to fifteen days prior to the sale date.
If you delay till the last five days prior to the sale, you will have to pay the whole loan amount.
Once you pay, the lender is required to record a Notice of Rescission. This shows that that the sale has been annulled.
Watch out for cons
Evade folks who promise to stop the foreclosure by having you transfer title of the property. Transferring possession does not halt the foreclosure. You will then also be accountable for the money you are indebted even if you no more possess the home. Likewise, it will not keep the foreclosure from coming up on your credit report.