Foreclosure?
Question:
For how long I can live in my house before bank will kick me out from the month I missed mortgage payment ?
I need some time to fix my financial situation.
Thank You !
Answer:
. How long does this process usually take?
A. From the time you miss your first payment to the final foreclosure sale its not uncommon for six months or more to pass. It will also depend a great deal on your mortgage holder and how aggressively they pursue your case.
Q. Can the bank just come and kick me out of my house?
A. No. Only an order of the court can force you to leave your home. Ultimately you may be evicted but there are procedures within the court system that the mortgage holder must follow first for the foreclosure and then another set for the eviction.
Q. When in the foreclosure process do I have to move out of my house?
A. YOU DON'T! The foreclosure process even when followed through to completion only transfers ownership of the house from you to the high bidder. This transfer of ownership becomes complete at a closing following the foreclosure auction. After the auction you automatically become a tenant in the house you formally owned. At this point the new owner must follow the legal procedures in California for eviction.
Q. What is the eviction process?
A. It is similar to traditional unlawful detainer proceedings with some twists. You should consult an attorney with expertise in this field if your case has gone this far.
Q. How long does the eviction process take?
A. From the day you are given you notice until a sheriff might pack up and move your possessions out of your house you can expect a 6 week to 6 month time frame, with the average about 10 weeks.
Q. Once the foreclosure process starts is there anything I can do to stop or slow it?
A. Yes. If working from your first late payment there are several ways to resolve the situation most relating to quality & timely communication and disclosure. The longer you wait, however, the more some of these options will become unavailable.
Q. At what point will I have absolutely no options left?
A. Never. You have not lost until you have decided the fight is over. Even after a foreclosure, even after an eviction you may have a right to buy your house back in the open market as anyone else. Realistically if you have not been able to save the house before a sheriff evicts you, chances are strong you will never be able to structure a deal to buy the house back. This is largely based on the assumption that you hired a capable attorney and had the ability to strike a deal. If so, you would have done so long before a sheriff removed you from the house.
Q. I am receiving a lot of mail from people that claim they can help me where are they getting my address?
A. Because of the legal nature of the foreclosure process your name and address may be part of public information offered through the court system and ultimately published in certain journals and publications.
Q. What kind of people send these letters and can they really help me?
A. Many groups of people try to contact homeowners in foreclosures:
Mortgage Brokers. If there is enough equity in your home they can help you to refinance and stop the foreclosure by paying off your current mortgage in full. This solution often works well, but you must be careful because the interest rate and closing costs on these types of loans can be high. Due to your credit situation you will pay much more than at a bank, but some brokers may try to charge even more points or interest then another just to gouge the debtor for more fees if they think they can get it. Keep your eyes open and a foreclosure prevention loan can save the day.
Chapter 13 Attorneys. If you have the financial ability to complete the chapter 13 plan and this also a valid way to save the house, just beware that many of these attorneys will be more than happy to file a chapter 13 for you whether it is the best option or not. It is my personal feeling that this should be an option of last resort unless your personal circumstances dictate this as the best solution for you. Keep away from lawyers running "bankruptcy mills" as I call them. These firms may offer low fees but will let paralegals handle your entire case, never really getting to know your situation or giving you the personal attention you need.
Mortgage Negotiators. Some people hold themselves out as professionals who can save you from foreclosure, other than those who fall into the crooks category below, some can be quite skilled at negotiating "repayment plans". Homeowners can arrange these plans with the banks themselves in easy cases. These professional foreclosure negotiators can help in cases where the people seem to be failing at getting a "repayment plan" done with the bank on their own or where the bank's terms seem too demanding. Often more favorable terms can be reached by a professional.
Private Financiers. Two very distinct groups fall into this category. The most useful for people wanting to save their home from foreclosure will be private mortgage financiers who will help arrange a new home loan, even when they have been turned down by other high risk lenders. Other investors will want to buy the house from you. Keep a sharp eye on what they are doing for you and what they want for themselves. Sometimes these people can help save your home, other times they don't care about anyone else and depending on how they set things up they can make your situation even worse. Remember there are many ways to save a house from foreclosure. You do not need to sell your house unless you do not want to live there anymore or you can not afford the payments even if you got a new mortgage or could catch up on the old mortgage.
Your Mortgage Holder. Especially those involved with government backed mortgages will offer ways for you to reinstate your existing mortgage. While I have seen some of these letters which can be down right misleading compared to what the banks will realistically do, reinstating an existing mortgage is a viable option and in many cases the best option.
I live in Florida. In this state there is no way to slow down a foreclosure. I dont know where you are located in. However, that said, I would consider going to Consumer Credit Counseling or whatever agency is authorized by Hud to intervene on your behalf with creditors and see if they can help you somehow. Go to the Hud.gov site and look under the consumers category. They've got a very extensive list for each state.
Usually once you miss the 2nd mtg payment they start forclosure and by 90 days they can sell the house at auction. After the auction you have 6 months to meet the banks stipulations to regain the house (usually bringing the payments currnet, paying penalties and fees associated with the forclosure, and requalifying for the mortgage) or you have to leave the house. If you are that close to forclosure you may want to consider bankruptcy. Or your bank should offer programs to avoid the forclosure. Another thing to be aware of; the bank won't even try to get the amount you owe for the house at auction...so even once you are kicked out you will owe the bank the deficiancy balance on the mortgage.
The most important thing for you to do right now is to contact your mortgage lender. Advise them of the problems you are having and see what they can do to help you out. If you just let things slide without contacting them they'll assume the worst and start foreclolsure after you've missed 2 or 3 payments. How long that will take depends upon the state you live in and local practices. A mortgage covered by a Trust Deed will usually foreclose pretty quickly as the courts often don't have to be involved.
Lenders don't want to be forced to foreclose, especially when the property is worth less than coparable properties in the area. They will lose money if they foreclose, possibly a lot of money. It's in their best interest as well as yours to see that that doesn't happen.
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