How do foreclosures work?
Question:
Answer:
As little as 90 days in some cases. Foreclosure is a process. First, the homeowner owes several months of mortgage payments. The first thing which will happen is you will receive notice from the bank that foreclosure is possible and they will request you contact them to try to set up a repayment plan. If you do not set up such a plan, the next document you will receive is a foreclosure notice usually set 90 days in the future. You then have 90 days to come up with the late payments, current payment and any court fees. At this point, there are several options; These include:
- Some how come up with the outstanding payments
- Sell the house yourself (risky as a house could easily take more than 90 days to sell)
- Sell the house to an investor for much less than market value
- Refinance the debt (usually at a very high cost)
- Personal Bankrupcy (many people use this as a last second tool to halt or delay foreclosure)
- Let the foreclosure happen
The last option is usually the worse as you will lose all equity in the home. Unless you owe more than the house is worth, foreclosure is the last thing you want to happen. A foreclosure will also destroy your credit.
My advice is to contact a lawyer. Most people shed their assets before going into a nursing home. A laywer should be able to tell you what your options are.
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