How the Foreclosure Process Works

The Foreclosure Process
1. Notice To Accelerate

2. The Demand Letter

3. Notice Of Default

4. The Notice Of Sale

6. The Bottom Line Of The Foreclosure Process

For more info visit http://foreclosureprocesstoday.com

How the foreclosure process works

We hear about the foreclosure process all the
time in the news these days…

…But what exactly is foreclosure and how
does it work?


The foreclosure process

Even if you miss one mortgage payment, you are in
danger of having the foreclosure process begin.

Now, this does not necessarily mean you are
inevitably going to be foreclosed upon.

But the mortgage company is going to tell you that
they haven't received your payment and that you
should send it immediately.


Typically, you will get these letters for two to three
months if you do not make a payment, and nothing
else will happen.

If you make good on your mortgage payments,
nothing else should occur and everything should be
okay as far as your mortgage goes.

However, it might go on your credit report that you
have been past due on your mortgage payments.

Let's now see how the foreclosure process unfolds if
you do not meet your obligations:


1. Notice to accelerate
• Once you are sixty days past due, you will get what
is called a notice to accelerate.

• At this point, you will need to bring the loan current
and nothing else will do, usually, to stop the
foreclosure process.

• You will need to pay the past amount plus any late
fees they assess you.


• You may also receive a threatening letter saying that
if you do not pay by a certain date, they may
accelerate the due date of the loan and start the

• The letter may also tell you that if you do not pay the
amount past due and they accelerate the due date of
the loan, you will also be responsible for any
attorney fees added to the delinquent amount.


2. The demand letter

• If you do not respond by paying the full amount due
on the date the mortgage company has established in
their notice to accelerate, they will hire an attorney
and this attorney will forward you what is called a
demand letter.

• This letter formally notifies you that if you do not
bring your loan current immediately, the foreclosure
process is going to go ahead within the court system.


3. Notice of default
• If you do not respond to the previous demand letter
by paying the full amount due plus any attorney fees,
the lender will then file a formal foreclosure notice
with the court.

• This is a notice of default, and will list the entire
amount you need to pay.

• You have about twenty to thirty days to respond to
this judgment before the foreclosure process
proceeds further.


4. The notice of sale

• If you have not previously responded to the demand
letter or to the notice of foreclosure, you will be
given a notice of sale after twenty to thirty days have
gone by, the period of time you were given to
respond to the notice of foreclosure.

• This particular notice simply sets the sheriff's auction
date, and your house will be sold at auction at that
point.


Stop your home foreclosure
• Be aware that this is the foreclosure process the
mortgage lender takes if you don't respond at any
other point in the process.

• With the exception of the last step, the notice of
sale, you have the ability to stop home foreclosure,
in some cases, as long as you stay in communication
with the bank.


• It does not necessarily mean you are not going to lose
your home, but be aware that the bank does not
want to foreclose on you any more than you want the
foreclosure process to happen.

• Therefore, to help stop home foreclosure, establish
communication with the bank at the very first step of
the process, even before you have missed your first
payment if you know it is going to happen.


• They may be willing to work with you to accept
partial payments right up front until you have caught
up, as long as you keep in constant communication
with them.

• Once you get to the point in the foreclosure process
where they cannot accept partial payments, the
notice to accelerate, you will have no other recourse
but to make full payment or lose your house.


• Therefore, it is in your best interests to keep in
constant contact with your mortgage lender once you
know you're going to have trouble meeting your
mortgage payments.

The bottom line of the foreclosure process…


5. Bottom line of the foreclosure process

• What is the bottom line, then? Your mortgage lender
wants to keep you in your house as much as you want
to stay there, so work with them to avoid a

• And if you cannot avoid losing your home, there are
steps you can take to save yourself the trouble of
being foreclosed on. Talk with your lender about
these steps, so that both you and your lender are
saved the trouble of going through the foreclosure
process.


Learn more practical tips and read more useful articles to avoid
foreclosure by visiting this user-friendly web site now:

Go to
http://foreclosureprocesstoday.com

Do not forget to download our free
Insider Strategies to Prevent Foreclosure eBook.


How the Foreclosure Process Works

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