A Foreclosure Process Timeline

Mortgage and Lending with Samaritan Partners

In order to stop foreclosure one must understand the foreclosure process. Foreclosure process differs in every state, and it is best that you as a homeowner understands and know the foreclosure process, as well as, the timeline. You, as the borrower, would be able to make a good or perhaps better decision for you to stop foreclosure based on what you have learned. There is the foreclosure timeline which starts when the borrower misses the first mortgage loan payment by a day; there are no penalties yet at this time. When the borrower still fails to pay within 16-30 days, there would now be a late charge and the lender will contact the borrower for an explanation why he or she missed the monthly payment.

On the 16th day of the missed payment, there will be an additional debt which is commonly known as mortgage late fee. On the 30th day of the missed payment, the borrower will be in default, meaning the borrower is behind in the mortgage payments, and if he or she still fails to pay then the lender will take his or her home. Some lenders will allow the borrower to pay the late payment partially; while other lenders would demand that the late payment should be paid. In California foreclosure process, the lender typically files a Notice of Default when the lender is at least 60 days behind in terms of the mortgage payment. Then on the 45th to 60th day, a "breach" letter will be sent to the borrower which states the mortgage terms and the borrower is only allowed 30 days to find a solution for the unpaid amount. In this period, phone calls from the mortgage collector will come frequently. Then, the borrower will offer options to the borrower to resolve his or her predicament and those options are repayment plan and loan modification.

Then, on the 60th to 90th days, a notice of default will be sent to the borrower and collection costs will be probably added to the late fees. Furthermore, the loan will be turned over to the lender's legal department which will send the documents to a local attorney who will begin the foreclosure proceedings. Then on day 150 to 415, Notice of Trustee Sale will be filed, and then the borrower's home will be scheduled to be sold at a foreclosure auction or a foreclosure sale. There are benchmarks that must be met during a foreclosure process, since, a foreclosure proceedings is a legal event. Advertising of the impending foreclosure in the local papers should be done, once the case is being handled by the local attorneys. The homeowner or the borrower have every right to stop the process leading to foreclosure, since, most states have laws regarding that. During this period, there are states that give chance to the borrower to purchase the property they have the ability, but, most homeowners or borrowers will be forced out from their homes by the department of the local sheriff.

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