Some Facts on Foreclosure By Dustin Rohde At Isnare.com Ezine Articles

There are four steps throughout the process of foreclosure which are the notice of default, the acceleration, the notice of sale, and the auction.

Depending on the bank, the foreclosure process can start right after your first missed payment. The bank will most likely take into account how long you have had your mortgage and what your payment history is. Usually the process will take 6 to 9 months, depending on the amount of foreclosures your bank is dealing with plus how many are happening in your area.

Notice of Default- This is the best time to stop the foreclosure. Contact your bank and let them know you want to avoid foreclosure. They may be able to grant forbearance, which is where they let you go a set amount of time without payments. This is also where you would consider loan modification. Depending on the bank, they may wait until you are three months behind on payments before sending out a notice of default and starting the foreclosure process.

Notice of Acceleration- In the next step, the bank will send out a notice of acceleration. The notice of acceleration will usually arrive a few weeks to a month after you received the notice of default. The time between the notice of default and the notice of acceleration is given to the borrower so you can contact the bank and work with them to avoid foreclosure. Upon receiving the notice of acceleration, you may still have a chance to save your home but you will need to have all of the payments and fees to deliver to the bank. Even if you do this, the bank will most likely want to review your financial situation.

Notice of sale is, quite simply, the date the bank intends to sell your house at public auction at the county courthouse. There is only one method of selling foreclosed homes, on the steps in front of the county courthouse. The notice of sale will have the date and time of the auction. At this point the only way to stop the foreclosure is to file bankruptcy to postpone it, or find a person to buy your house for you.

Auction- Once your house goes up for auction, the only way you are keeping it is if you can find someone to buy it for you, or buy it yourself.

Now there are a few things you need to think about up front. First is that the longer you wait to contact your bank, the worse the situation is going to be. If you are even one payment behind, contact them. Now. If they are trying to contact you, DO NOT IGNORE THEM. It is amazing the numbers of people who ignore their bank’s attempts to contact them and work something out. Pretending it isn’t happening doesn’t work.

Be ready to provide all pertinent financial information, and tell them that you would like to work out an arrangement until you can continue making payments. Also, keep records of any contact you have with your lender: date, time, person spoken with. Just be honest. Don’t promise or agree to something if you know you can’t do it.

If you and the bank are unable to work out an arrangement, there are people who can help you modify your loan. These are people who are specialists in negotiating with banks and are well informed about the mortgage industry. Everyone has a different situation, so contacting them will get you more information as to what they can do for you. Most have web sites with Loan Modification Free Consultation forms you can simply fill out and get a response within hours.
SO…The lesson learned here is that should you unfortunately fall behind on your mortgage payments, you can still keep your home, if you act with decisiveness.

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