What are the foreclosure proceedings from start to finish?
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Answer:
Depending upon your states homestead rights/rights of redemption you may have up until the actual foreclosure sale date or you may have terminated rights once default is declared. In TN you have right up to the foreclosure sale date.
Technically the day you are late puts you in default status, but most mortgages have a"grace" period built in. Foreclosure usually is the last step in the process after giving you- even encouraging you to get the note up to date.
If you have been in your home several years, you may be able to get some additional grace if you have also been a good at paying timely. The last thing a lender wants is to foreclose, as they have to set aside a like dollar amount to cover the bad debt thereby tying up double the actual amount in default until it is resolved, and removing that amount as potential loan funds to a good loan.
Call your lender and see what arrangements they will agree to catch things up. Bad things happen to good people too. They understand that, but you need to take positive action now.
To find what the law says in your state about how a foreclosure proceeding works go to http://www.realestateformnm.com/contact. copy and paste this statement "please send your free real estate research page on the following state " give them the name of the state click send and the staff will send you all the links on your state for real estate research which includes all the laws in your state.
The basics in general terms are: first you get a notice, then if you fail to answer the notice and or send payment as requested, depending on the statements in the notice, a suit to foreclose is filed, you are served with the notice and then a subpoena to appear in court, a whole bunch of things can happen after this point, then you go to court, if you are not successful in say reinstating your mortgage, the court (depending on the type of mortgage instrument used) will appoint a master of sale which will hold a public auction to sell your property. The lender usually shows up and bids what is owed depending on what the judgement says permitting them to do so. The master then issues a deed to the successful bidder and the title passes. If the amount bid at auction is not sufficient to pay the debt you may be taken back to court for a deficiency judgement which could lead to garnishment of wages, collection agencies and liens on any other asset you may have. If you have not moved from the premises when the title passes then the new owner takes you back to court and files for an eviction notice and restitution and a whole new set of notices and legal actions occurs.
Given this information you can see that it is not in your best interest to contemplate handling these types of actions without proper legal representation in the state and area you live in, get a real estate attorney.
Good luck and I wish you well.
HI,
Let me just say I am so sorry that you have to go through this. I hope that I can help. When I found out we were in foreclosure the mortgage company sent out a notice that my home would be going to auction in 30 days of the date of the notice. I had to come up with 6 mons. of payments including late fees. ( I am sure that some lenders very) Once you receive a foreclosure letter it instantly goes on your credit even after you bring it current, I found that it also goes on your record as though it was a traffic violation. ( Hopefully that is not true for the state that you reside).
I was able to come up with the money and had to work with the mortgage company by Western Union and made sure I received a letter from them stating that in fact it was paid. I would say it is too late the day of auction.
I hope that this helps, it is what I had to deal with and I pray that it works out for you.
Take care,
bmore4us
From the time you default, read your mortgage, you no longer have the right to "catch up." (the legal term is "re-instate") Most mortgage lenders will be happy to let you do so up until the judgment of foreclosure & some up to the court ordered sale. After the court ordered sale, its not yours anymore & the mortgage itself is extinguished. You do have a "right of redemption," meaning you can pay off the mortgage balance plus court costs & attorney fees right up to the date of sale; but that's a far cry from a re-instatement.
It's too late when someone else buys it on the Courthouse Steps.
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