Foreclosures

Foreclosure is a legal process in which a lender sells your property to recover its losses, including the balance of the loan and costs of collecting the debt and foreclosing on the property. Foreclosure can occur for any of the following reasons:

• Failing to make loan payments
• In some cases, transferring ownership of your property without your mortgage lender’s consent and paying off the debt
• Otherwise violating the terms of your loan documents

The lender may sell the property at a public auction to recover its losses. In some cases, the lender will take ownership of the property if another buyer does not bid above a certain amount.

If the foreclosure goes forward without an alternate solution, the legal process varies from state to state, but follows two basic processes — judicial and non-judicial foreclosure. A judicial foreclosure is handled as a civil lawsuit and is conducted entirely under the supervision of the court, while a non-judicial foreclosure takes place without any formal court proceedings.

Judicial Process:

• The borrower is notified that the foreclosure process has begun
• Foreclosure papers are filed with the court and served on the borrower and all other parties with an interest in the property
• Hearings are held with the court regarding the foreclosure
• The court issues a judgment and a foreclosure sale date is scheduled
• Legal notices may be published in local papers
• The house is sold at public auction

Non judicial process:

• The borrower is notified that the foreclosure process has begun
• A notice of default is recorded
• A notice of sale is recorded and mailed, and legal notices may be published in local papers
• The house is sold at public auction

If you want to stay in your home, and you have received notification of foreclosure proceedings, you need to contact your lender to see if you qualify for refinancing or other loan modifications. Loan modifications can be risky, be sure you do research before you commit to any loan modification.

Refinance
HARP (Home Affordable Refinance Program)
HOPE NOW
Home Affordable Unemployment Program
Forbearance
Home Affordable Modification Program
FHA Home Affordable Modification Program
Home Affordable Modification Program Military Modification
Hardest Hit Fund

If you desire to leave your home, you may have these options:

Short Sale Programs

The goal of a short sale is to help you avoid foreclosure if you’re no longer able to remain in your house. In the short sale process, you sell your house and settle your mortgage debt for less than the amount that you owe.

Deed in Lieu

This option lets you avoid going through the foreclosure process by signing the deed to your property over to your lender. A deed in lieu can negatively affect your credit score, but the impact is generally less severe than a foreclosure.

Private Investors

These are hard to find, but occasionally you can find a private investor who will buy your home for the amount owed.