How long before a house goes to foreclosure?
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Answer:
Depends upon the state and the circumstances. California, it's 120 days past due is *eligible* for that notice of default, then 60 days more and you're eligible for the Notice of Trustees Sale.
On the other hand, if you talk to your lender there's a lot that can be done in most cases. Regulated lenders do not want to foreclose. They usually lose money out of it, and it's always bad publicity. If there's an alternative they see as reasonable, they'll usually accept it.
omg you didnt pay your house note..well, sounds to me like you're in a8s8s deep and you're screwed...
It actually takes about 6 months before they start the forecloser normally. Depends on the state regs. Usually takes 3 months after that for them to kick you out. Another 6 months before they auction of the house. Then another 2-3 months before they take you to court for the remainder of the loan.
That is of course a estimated time. It could be different based on state, credit holders, and amount of your loan.
The mortgage company will let you know when it will begin. I'd call the mortgage company first and explain your situation and see if they are willing to work with you. If not, wait for foreclosure and use 401K (if you have one) or file chapter 13 bankruptcy and make up to the delinquent payments over 5 years. This way you can keep your home and try rebuilding your credit. Good Luck!
I ama Mortgage Broker for COUNTRY WIDE HOME LOANS in Manhattan NYC.
Typically a bank will start a foreclosure if the mortgage is late or insufficient THREE MONTHS IN A ROW (about 120 days). However, in some cases, some banks will begin foreclosure after SIX MONTHS of late payments.
You will know you are in foreclosure if the bank sends you a yellow letter (notice of default on payments) in the mail stated that it intends to foreclose.
I have seen some situations where a bank will work with you to keep you out of foreclosure but ultimately they don't want to reduce your monthly payments because all that does is add more to the Principal of your home which just increases the amount of money they aren't expecting to be paid on time.
It really depends on the state, the bank's policies and the circumstances. In the event of a mjor disaster such as 9/11, banks didn't foreclose on people who'se spouses were killed because of the massive financial losses and legal issues involved.
When dealing with a natural disaster such as a Hurricane or major flood like in New Orleans, in many cases, there is nothing left to foreclose on or noone left alive to pay for the property. It is written off.
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