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Foreclosure Questions & Answers

Here are some foreclosure frequently asked questions & answers:

Foreclosure Question: What is a foreclosure?
Answer: There are two kinds of debt: secured and unsecured. Unsecured debt is like a credit card – if you don’t pay, there’s nothing the card company can take. But a secured debt is when you have agreed in advance that the loan issuer can take your property if you do not pay the loan. A foreclosure is the legal process of taking the property when you have stopped making the loan payments.

Foreclosure Question: Can the bank just kick me out of my house?
Answer: No, the bank must go through a legal process before they take your home and evict you. The process and the length of time varies by state, but you will have at least 45 days notice and generally much longer. One man in Ohio was able to fight foreclosure and stay in his home without making payments for 11 years! (Results not typical!!!)

Foreclosure Question: What are the steps in foreclosure?
Answer. First, you are in pre-foreclosure. That means that you’ve missed some payments and the bank may have contacted you by phone or mail, but they haven’t initiated any legal action. Once they initiate legal action, you’re in foreclosure. They have to serve you with a Notice of Default. They also have to publish the notice (which is why you get so many predatory letters around this time). There is a waiting period so that you can come up with the owed monies or make arrangements with the bank to settle the debt. If you can’t do that, there is generally a court hearing (varies by state) and then there is an Order issued allowing the bank to sell the house. You can still make the bank an offer during this period. Then the bank sells the home at auction to the highest bidder. In some states, there is a redemption period after the auction where you can still make a deal with the bank. If no deal is made, you have three days to vacate the property.

Foreclosure Question: How long does the process take?
Answer: Some states move fast on foreclosures. It is not uncommon for a foreclosure in Texas to be through in the minimum 45 days. However, most homeowners have about six months from the time of service of the Notice of Default.

Foreclosure Question: What can I do to stop foreclosure?
Answer: There are many ways to stop foreclosure. You can bring the mortgage up to date. You can sell the house. If you owe more than the house is worth, you may be able to do a Short Sale or a Deed in Lieu of Foreclosure. If you want help navigating the system, you may want to contact a mortgage mitigation professional. I recommend <a href= http://www.homeassure.com/a/1628> Home Assure </a>to anyone wanting to work with a reputable company to save their home and credit.

When you have foreclosure questions, you want answers. I urge you to download the free report, the Foreclosure Survival Guide, at the top of this page for more answers to your foreclosure questions.