Loune-Djenia Askew Esq.
Oct 26, 2023
Foreclosure is the period after you fall behind in payments, but before foreclosure can officially start the process is called the “pre-foreclosure” stage. During this time, the servicer can charge you various fees like late charges and inspection fees. Foreclosure cannot start until you are more than 120 days past due
What is foreclosure?
Foreclosure is the period after you fall behind in payments, but before foreclosure can officially start the process is called the “pre-foreclosure” stage. During this time, the servicer can charge you various fees like late charges and inspection fees. Foreclosure cannot start until you are more than 120 days past due. Under federal mortgage servicing laws, if the property is your principal residence, the servicer must contact or attempt to contact you, by phone no later than 36 days after your missed period and again within 36 days after each following delinquency.
Process of a Foreclosure
How Judicial Foreclosure works:
Begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale
Publication of a Notice of Sale:
The lender must publish a sale on a publicly accessible website for at least two consecutive weeks before the sale.
How does it work?
A foreclosure sale must take place 20-35 days after the judgment date, unless the court says otherwise. After the foreclosure sale, the court clerk must promptly file a certificate of sale after the foreclosure sale, which usually happens within days of the sale.
What is Pre-foreclosure?
Preforeclosure is the first step in a foreclosure proceeding brought on because the homeowner has failed to make three to six (3-6) months worth of payments. When you become late, or delinquent on your mortgage, your lender will begin contacting you by letter or phone to try to work out a solution that does not involve you losing your home to foreclosure. If you do not work with your lender or are not able to come to a solution and miss three (3) or more payments, your lender will file a notice of default, which is a public record stating that your loan is in default. This is the beginning of the foreclosure process.
What is Bankruptcy?
It is a legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations.
How does it work?
Bankruptcy provides an individual or business a chance to start fresh by forgiving debts that they can not pay. All bankruptcy proceedings in the United States go through federal court. A bankruptcy judge makes decisions, including whether a debtor is eligible to file and whether they should be discharged of their debts.
Short Sale
A short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owner's mortgage. All of the proceeds of a short sale go to the lender. The lender then has two options, to forgive the remaining balance or to pursue a deficiency judgment that requires the former homeowner to pay the lender either all or part of the difference. When you sell your home for less than you owe on it, it’s called a short sale. If your lender agrees to this, you may be able to satisfy your mortgage debt by selling your home and using the proceeds to pay off as much of the loan as possible, with the lender agreeing to forgive the remaining balance, often writing it off as income to you.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.