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How Does Foreclosure Work
[July 9, 2008] by Foreclosure Help
Filed under: How does foreclosure work

Information based on a Judicial State

Foreclosure is a legal proceeding where the mortgagee (the lender) gets in many cases a court order to begin the process of taking back the property used as collateral on the mortgage document. At closing (the purchase of the property) the mortgagor (buyer) signs the mortgage and the mortgagee (lender) puts up money and the homeowner signs the document that uses the house as collateral. If the borrower misses a payment the servicer (mortgage company) reports the mortgage as being late to the credit bureau. If the loan continues to be late the mortgage company sends a tape feed to the credit bureau reporting lates. After 90 days or 3 months of late payments a default letter (demand letter) is sent to the homeowner demanding payment in full within 30 days or the loan will be referred to a foreclosure attorney.

Once the loan is referred to the attorney the attorney begins billing and the first step is to issue a Lis Pendens (court action informing of foreclosure) and the mortgagor is served with foreclosure paperwork. The service is the actual notice that the loan has been placed in a foreclosure status and the lender is pursuing their rights on the property. In the foreclosure paperwork is a court date 20 days after service to allow an “Answer Period”. This allows a mortgagor to appear in court and state their case in front of a judge. It does not matter what you say the attorney will ask to continue pursuing the foreclosure based on the mortgage documents that were signed giving the house as collateral. As a homeowner you do have the opportunity to hire an attorney in your behalf and can stall the sale by requesting all foreclosure documents and verifying proper steps were taken to refer to foreclosure. In many instances the sale can be stalled.

Around the 60th day of foreclosure there is another court hearing “Final Judgment Hearing” the hearing sets a foreclosure date at or around 30 days from final judgment hearing.

The auction takes place at a defined area.

We can help stop foreclosure during any phase of foreclosure contact us today.

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