Questions And Answers About The Foreclosure Process And How It Will Effect Your Family

By Author: Nick Adama
Total Articles: 197
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If you are in foreclosure, you are going to have many types of questions on your mind about what exactly is happening.  In this article, I'm going to go over some of the most commonly asked questions that people have when it comes to the foreclosure process.

What is Foreclosure?

Foreclosure is when a lender attempts to collect money that you acquired from them in order to purchase or refinance your home.  The foreclosure process starts when you do not have the money to pay them back and you have missed a couple payments on your mortgage.  The institution you borrowed money from will then take back what you borrowed money for, like your house.

Can the Bank Kick me out of my house?

Yes and no. They won't just come and kick you out at once.  There is a process within the court system that the mortgage holder must follow. Before they will come and evict you out of your house, they must go through the entire foreclosure process. But with time this can and will happen if you don't do something to stop the foreclosure.

How do I know if the lender will ...
... starting the foreclosure process?

There is a procedure known as pre-foreclosure. This is the time where you will have signs that the lender is getting ready to take your home. 

The process usually goes like this:

1.    Homeowner misses mortgage payment

2.    Lender sends late notice

3.    Homeowner misses another payment

4.    Lender makes an effort to take care of the situation in a notice or phone call

5.    No arrangements are agreed upon or homeowner avoids contact with lender

6.    Homeowner misses another payment

7.    Lender then may demand that the total mortgage is paid in full

I just didn't make a couple payments, how can the lender demand that the whole mortgage be paid in full?

Under the Acceleration Clause, the lender can and will demand that payment be made in full if you miss a couple mortgage payments.  Most mortgages say that if you fail to pay the bank under the terms agreed upon, they can accelerate the mortgage, meaning the entire amount due.  If you missare late on mortgage payments, you will not only owe the amount in full, but also any interest and late fees.

I have already have missed a couple payments, what is the exact legal foreclosure process?

1.    The bank will send a notice of intent to foreclosure delivered by a county sheriff or certified mail

2.    The bank then goes to the court system to ask for a foreclosure

3.    Legal notices are required by law to be published in local papers

4.    The period during which you could have paid the bank back to avoid foreclosure expires

5.    The court holds a hearing regarding the bank's claim that you did not paid them

6.    The court then issues an order allowing the bank to foreclose

7.    Legal notice of the actual foreclosure sale and advertisements will then be published in the local papers

8.    If no settlements have been reached by the homeowner and bank the house will go to auction and be sold to the highest bidder

Hopefully this answered some of your foreclosure questions, if you have more feel free to leave a comment and I will answer them.
Nick publishes articles on the ForeclosureFish website, which attempts to educate borrowers how they can stop foreclosure on their properties while they still have time. The site describes various methods to hold onto a house, including foreclosure loans, cash for keys, mortgage modification, filing bankruptcy, and more. Visit the site today to read more and find out what solutions you can use to avoid the loss of your home: http://www.foreclosurefish.com/