Good consumer information in this recent blog post. Too many homeowners in a foreclosure situation bury their heads in the sand. The problem will NOT go away, so communicate with you lender
Foreclosure - FYI
Few people think they will lose their home, they think they have more time. Here's a general outline of how it happens. Note: Timelines may vary.
· First month missed payment - your lender will contact you by letter or phone. A housing counselor in your area may be able to help.
· Second month missed payment - your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind.
· Third month missed payment - after the third payment is missed, you will receive a letter from your lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a "Demand Letter" or "Notice to Accelerate". If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin legal proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender.
· Fourth month missed payment - now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full amount or worked our arrangements you will be referred to your lender's collections department or attorneys. You will incur all attorney fees as part of your delinquency.
· Sheriff's or Public Trustee's Sale - the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies. In some cases it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees.
· Redemption Period - after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your city or province uses for your Sheriff's or Public Trustee's Sale.
Redemption is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process.
Many cities and provinces have some type of redemption period. The redemption period and availability is often determined by whether the foreclosure is judicial or non-judicial. And, timelines and procedures can vary greatly.
This is not to be considered legal advice....ALWAYS consult with your solicitor.