Your home is used as security by your lender for the mortgage payments you make. This means that they can take your home if you don't pay the bills. Foreclosure is the process they use to take your house.
If you are behind on your payments, you need to act quickly to keep your home from being taken away.
What should I do if I can't pay my mortgage on time?
Call your lender Most lenders don't want you to lose your home. Tell them why you can't pay them on time. Ask them to help you get your bills paid on time.
Don't ignore letters from your lender Tell them you got their letters and would like to work with them.
What your lender can do for you
Your lender might let you make up the missed payments over time or give you more time to pay back the loan.
What if my lender refuses to help me?
You can still choose:
Call up a different lender. Ask them if you can get a new loan to pay off your mortgage.
Sell the house. You might be able to pay off the loan and still have money left over if you sell your home.
Talk to an attorney. Find out if going bankrupt will help you keep your home.
The process of going bankrupt
When you get a Notice of Default in the mail, the foreclosure process starts. The Notice of Default tells you that you haven't made your payments. It also tells you how much you owe for late payments and fees related to the foreclosure.
After the Notice of Default is filed, you have 3 months to pay the back payments and fees. On the first page, next to the words "recorded on," you can find the date the notice was written down. If you pay the amount on the Notice of Default, the lender can't sell your home.
When will my house be sold?
If you don't pay what you owe within 3 months, your lender can sell your home. Your lender must send you a Notice of Sale before they can sell your home. The Notice of Sale will say when, where, and at what time your house will be sold. You must get the notice of sale at least 20 days before they plan to sell your house.
How do I stop my house from being sold?
You can pay the total amount due, including any fees, up to 15 days before the sale date.
If you wait until the last 5 days before the sale, you will have to pay the whole loan amount.
After you pay, the lender has to put a "Notice of Rescission" in your file. This shows that the sale is no longer going to happen.
Look out for cons!
Stay away from people who say they can stop the foreclosure if you give them the title to your home. Even if the owner changes, the foreclosure will still happen. Even if you no longer own the home, you will still have to pay the money you owe on it. Also, the foreclosure will still show up on your credit report.
