Re: timeline
Posted by Julio Martinez-Clark on January 30, 2008 at 16:13:23:
In Reply to: timeline
Posted by ele on January 30, 2008 at 10:25:30:
Ele,
The timing before the home is sold at auction and how long time you have
before you move all depends on your state laws. You can have an idea here: www.all-foreclosure.com/procedures.htm. Besides this, there is plenty of
information online about your specific state laws.
Yes, the answer from your lender sounds credible; it's generally in their
best financial benefit not to foreclose on you, but to work on a loan
modification/forbearance with you.
The following is from an article that I recently wrote on the topic that may
help:
"If the homeowner decides to stop paying the monthly mortgage
obligation, after 3-4 months of no mortgage payments, the lenders will
start legal foreclosure proceedings with serving the homeowner with a
mortgage foreclosure complaint, and in about 6 months or so (depending
on the state laws where the property is and how busy is for a trustee or the
county court house to schedule a sale due to the present high volume of
homes in foreclosure), his/her property(ies) will be sold at public auction.
It's important that the homeowner answers what in judicial states is called
a "summon" within the 20-day limit by most jurisdictions. A sample answer
to a mortgage foreclosure complaint (a.k.a Summons in some states or
Notice of Default in other states) can be obtained by using the sample
pleading/answer provided in the free book "How To Legally Beat Debt
Collectors" and by following the instructions in the book.
From the time the homeowner stops making mortgage payments until the
property is sold at the auction, the homeowners will be able to stay in the
home mortgage-free and the lender cannot legally send an agent to evict
them. Check www.foreclosurelaw.org/ for a detailed summary of your
state's foreclosure laws or search the internet for your state's full
foreclosure laws to determine how much time the foreclosure process will
take, whether your state allows mortgage deficiency judgments, your
state's redemption period, etc. A mortgage deficiency judgment refers to a
mortgage lender’s judgment against the borrower for the difference
between the outstanding balance of the mortgage note, plus costs and
attorneys fees, and the value of the property foreclosed. The property value
is determined on the date of the foreclosure sale."
I hope this helps,
Julio Martinez-Clark
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