Home Loans and Support

Foreclosure Process

Discussion in 'Foreclosures' started by Moe, Jan 30, 2008.

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  1. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    The foreclosure process varies in every state and it's imperative that homeowners understand this process. One thing is for sure, time is NOT on your side. But, an educated consumer is always an informed consumer who can make a "good" decision based on facts. Learn everything you can because this will affect you in every which way and it is something that should not be taken lightly.

    The first thing you will need to do is understand the foreclosure timeline.


    Day 1 - Borrower misses first payment by a day. No penalties assessed at this time

    Day 16-30 - A late charge is assessed to the borrower’s payment.
    The lender or mortgage servicer will attempt to make contact with the borrower for an explanation.

    Source Mortgage News Daily:

    Day 45-60 - The servicer sends "demand" or "breach" letter to the borrower stating the mortgage terms that have been.
    The borrower is given only 30 days to resolve the delinquent amount.

    Source Bank Rate:

    Day 90-105 -The servicer refers the loan to its loss mitigation department / foreclosure department and retains an attorney or other firm to handle the foreclosure proceedings. Depending on the state where the home is located, the servicer's representative may record a notice of default at the local courthouse and it will be published in the local newspaper

    Bank Rate:

    Day 150-415 – A notice of trustee Sale is filed and the home is scheduled to be soldat foreclosure sale or auction. This time range varies due to individual state laws and requirements.

    States with judicial foreclosures / where foreclosures are done via the court system, can sometimes extend this period to a year or more.

    A foreclosure is a legal event and there are benchmarks that must be met. Once the case is turned over to attorneys, the impending foreclosure must be advertised, usually in both the local papers and in the largest and closest metropolitan daily. The entire process can take a very long time from initial default to the actual public auction of the property. If a member of the military is an owner of the property, there are additional safeguards required by federal and in some cases state laws From the beginning of the process, however, the meter is running. The longer the foreclosure takes, the greater the debt that accrues and the larger the liability the homeowner has, something that will become critical down the road.

    Nonjudicial foreclosure states can foreclose in as little as two months.

    Day 150-415 – Some states offer what is called a redemption period after the foreclosure sale in order to give the borrower time to purchase the property if they have the ability. However, most will be forced out of their home by the local sheriff’s department.

    From Realty Trac

    Following the same logic, customers should try to negotiate the best deal they can get without feeling guilty. Someone whose property has fallen in value below the mortgage amount because of a neighborhood decline, for example, should consider pushing for a short sale or short refinance rather than a repayment plan. That way, the borrower doesn't pay more money than necessary. Nevertheless, the best way for consumers to get out of foreclosure without racking up extensive legal bills and ruining their credit histories is to start working on a solution before their problems get out of hand.

    "In no case should people take the step that is most often taken in this situation," Brenner says. "That is to stick your head in the sand and ignore it."

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  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Example Timeline

    1/2/2008 - January payment becomes past due.
    2/2/2008 - February payment becomes past due - account is now due for 2 payments.
    3/2/2008 - March payment becomes past due - account is now due for 3 payments.
    3/5/2008 - Lender sends the Notice of Intent to Foreclose (Act 6 Notice) to the mortgagor. If applicable, the lender will also send an Act 91 Notice that makes the mortgagor aware of the Homeowners̢۪ Emergency Mortgage Assistance Program.
    4/8/2008 - Act 6 and Act 91 Notices have expired - Lender refers account to Foreclosure attorney.
    5/8/2008 - Foreclosure attorney begins the legal process by filing a "Complaint" at the county courthouse.
    6/23/2008 - Mortgagor does not respond to the complaint - a "Default Judgement" is entered.
    6/25/2008 - Sheriff̢۪s office schedules a "Sheriff Sale" date.
    7/25/2008 - Notice of "Sheriff Sale" is sent to each mortgagor on the loan.
    8/25/2008 - "Sheriff Sale" is held.
    8/27/2008 - Sheriff prepares and records a deed conveying title to the purchaser. If a third party does not purchase the property, the deed will convey title back to the lender.
    8/27/2008 - Eviction process begins if the mortgagor still resides in the property.

    source http://www.phfa.org/consumers/homeowners/defaulttimeline.aspx
  3. kedubob

    kedubob LoanSafe Member

    The notes say there is a default judgement if owner does not respond, how does one respond to the legal action?
  4. Mary Salzer

    Mary Salzer Guest

    You should at least hire an attorney for a period of 2 hours and get the information on how that should be handled and then proceed with either legal assistance or on your own if you feel that you are able. Even with appearance in the matter there can still be default depending on the state and the state statutes on Foreclosure....that is in the decision of the courts on that matter as to how they will allow the decision to come down on that matter.
  5. jorgerodr

    jorgerodr LoanSafe Member


    I have a townhouse rented in Florida that I no longer could afford. How long will I be able to collect rent until the banks takes it back since there is a big backlog of foreclosure. I am thinking at least 12 months

  6. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

  7. money94

    money94 LoanSafe Member

    Is there anyway to speed up the process as the mortgage holder? I had the forclosure process started once, was able to make restution and get the loan re-instated. Then not less than a month after that lost my job. I have recently found another job in another state making less money and there is no way to make the payments and rent in our new location. We tried to sell the property but found there are liens against it.

    Thanks in advance for any help.
  8. BrianF

    BrianF LoanSafe Member

    This is a silly question....When you receive an initial notice for foreclosure, is it coming from the lender themselves or is it from the Sheriff or attorney?

    I just want to know what to expect, in case it happens....
  9. money94

    money94 LoanSafe Member

    the first notices usually come from the lender themselves. At first it's the persuade you to pay up.
  10. 925girl

    925girl LoanSafe Member

    If the lender cannot tell me, and my settlement papers do not have it checked AND HUD has no record how do I find out if my loan was FHA insured?
  11. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    If HUD doesn't have a record of it chances are it is not...........

    1-800-CALL-FHA (225-5342)

    try these numbers and see if they might be able to look also........
  12. 925girl

    925girl LoanSafe Member

    Thanks Cat! To be continued.....
  13. Bye Maricopa

    Bye Maricopa LoanSafe Member

    What is with the line "serious legal fees are accruing." Is that only a bad thing if you do not qualify for non-deficiency statute protection?
  14. mrehumhd

    mrehumhd LoanSafe Member

    My home was foreclosed on July 1, with the 1st mortgage company having the high bid. However, before the 10 days elapsed, an upset bid was received on July 8th from an individual. I received a letter from the trustees saying they were holding open the bidding process for another 10 days (July 18th) My realtor and I were trying to work out a short sale arrangement (long story here) with the 1st mortgage company who is the one who did the foreclosure. My question pertains to personal property items still in the house - the buyers had written into their contract - such as refrigerator, living room suite, etc. Some friends went to my house today to try to retrieve the personal property items, and they have all been removed from the premises, with No Trespassing Signs on all the doors. I am living/working in another state now - but they gave me little to no time to get the items out of the house once the short sale fell through - was/is this legal for them to do this if the bidding period is still open?
  15. grmeyer

    grmeyer LoanSafe Member

    I live in AZ. I have walked away from my mortgage. I am not interested in any loan modification. A short sale or DIL is also not an option. My home is located in Pinal county where home prices have declined 80%. As a way to remove my name from the title, I would like to execute a Quit Claim Deed. The Deed of Trust lists following:
    Trustee -> First American Title
    Mortgage Electronic Registration Systems, Inc -> Lender's Successor and assignee
    AHM Mortgage -> Lender

    The questions I have are:
    Who should I deed the title to?
    Do I need to have an agreement with the lender to execute the Quit Claim Deed?
    Will executing the Quit Clain Deed create any problems later during a forclosure?

    The purpose in executing the QCD is to remove the obligations associated with being on the title: property taxes, HOA fees, liability, landscape maintenance.
  16. Lisann4bz

    Lisann4bz LoanSafe Member

    I received a notice last week that mentioned acceleration. I am 6 months behind because I did a forebearance and then couldn't pay because again my husband was laid off. They told me that the 6 months had to be paid in full by by 9-15 or it will become necessary to accelerate the note and pursue remedies provided in the mortgage deed of trust. So are they saying they will come after me for the entire amount owed? It says they will proceed with acceleration. Did I just read above that if that occurs, I will not be able to get out of the foreclosure without paying the full amount owed of the house? My God, it just gets worse daily....
  17. grmeyer

    grmeyer LoanSafe Member

    If you violated the terms of the forebearance, the lender probably has the option to accelerate the loan. If your circumstance has changed since the original forebearance agreement, why not approach the lender to discuss a new agreement, if you want to stay in the home. With lenders looking at so many loans in technical default, you may have a lot of options.
  18. Lisann4bz

    Lisann4bz LoanSafe Member

    We are trying to do this and have been told that out income deficit ratio is too high for them to work with us on a new repayment plan. We are submitting financials again and hoping but truth be known, we DO have a low income at this point because my husband and I are both unemployed. I hope they can help but I am daily losing faith.
  19. mel239

    mel239 LoanSafe Member

    Im in OHIOhundreds of phone calls and faxes to everyone I could think of from the President to Citi and everyone in between-havent even had a trial period or an offer for a mod-havent paid in months-now I have income and I pass the NPV for less than a thousand a month including past due,taxes,insur, I can do that even though my house is 80,000 underwater-I want my home-nobody listens or calls-its like HAMP doesnt even exist.I had my second status conference with the courts lasted 5 minutes-magistrate said this could drag for a year then Im entitled to 3rd party mediation and then when a judgement comes in citis favor then I get an atty and present my evidence against citi not bargaining in good faith,predatory loan,and anything else we can think of-which in turn will drag on-GOOD Im looking for that cramdown to be approved then I can pay what the house is really worth and settle with my credit card companies--im not trying to screw anybody but if I dont get an offer or trial from citi im still not paying a cent and the magistrae said she sees it all the time--why throw good money after bad if you lose in the end?
  20. mel239

    mel239 LoanSafe Member

    And by the way-their atty didnt even care-he said keep working with them and continue it--he didnt care-he said he would provide me with theQWR I requested-told him thats down the road when I really need to fight
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