The Process of Foreclosure FilingsPosted in Foreclosure Filings, by Courtney Allen
You have just been served a foreclosure notice by your creditor and are in a state of panic! How do you save your home?
You actually have a number of options in front of you – and panic is not one of them! First, understand what will happen. Various states have various systems for foreclosure. You need to first find out what is applicable in your state. Most states require the lender to go through court in order to initiate foreclosure proceedings.
A summons will be delivered to you containing a complaint and a notice that foreclosure proceedings are being initiated. Next, a response to the summons must be filed within a limited period in the court.
If the lender wants to start foreclosure proceedings, then a suit is filed. You will be informed about this in advance. If a judgement is passed, then the court fixes a date for a foreclosure sale. Usually the sale takes place about 30 days from the judgement day. It is only if the real estate is sold at the foreclosure auction that you will finally lose your home.
How can you save your home?
Receiving a foreclosure notice does not mean you will lose your home automatically. There are several choices before you. The complaint can be reviewed and an extension requested from the court. However defending against foreclosure is expensive. Other options need to be considered carefully before taking this route.
- You can bring the mortgage up to date by making all the necessary payments.
- You could get in touch with your lender and discuss the reasons behind why your failure to pay. You may be able to work out a settlement before they initiate foreclosure proceedings.
- You could explore refinancing.
- You could resell the home so that you retain the equity. The real estate can be sold at any time before the court auction. This would save you expenses and help recover the actual value of the real estate. This is especially if you sell in the early stages of the foreclosure. When selling you should try and get a price that will cover the debt.
- As a last resort you could file for bankruptcy. This would give you the opportunity to reinstate the mortgage within a period of 5 years. You would continue making regular payments with a slight increase so that previous non payments are taken care of. You could also choose to sell within this period.