Foreclosure is the situation when a property owner cannot make the payments to the principal loan or even to the interest of the principal loan. The inability to pay leads to the property being seized and sold. That is foreclosure of property. There are basically 4 major steps in the foreclosure process. The first stage is the ‘notice to accelerate’. This notice is sent to the home owner who is 60 days past due to a payment. Even after missing a monthly payment for the first time, you can be assured that the lender will contact you about your status.
After the second month of inability to pay, the lender will contact you again and inquire about your status, and at this point t is most advisable to speak to the lender and explain your situation or you may get a counselor to assist at this early stage. Once you reach the point that you’re 60 days past due in payment, it is most important to update your payment along with the additional late fees that may be assessed. The second stage is the sending of the demand letter. The formal demand letter is made by the attorney that is hired by the lender. It is a formal notification that the foreclosure process will start if updated payments will not be made.
‘Notice of default’ is the third stage where the formal foreclosure notice is sent to court and filed. Twenty to thirty days is given for you to respond before the foreclosure process moves forward. And in the notice of default is the list of the amount you need to settle in its entirety. The fourth and final stage is the ‘notice of sale’, where the sheriff is to set an auction date. At this point, the property that is foreclosed will be sold at auction.
In order to avoid this process, it is essential to keep in constant communication with the lender or the bank to establish that you are finding ways in order to settle the payments. In some cases, partial payments are accepted until current status is updated. It is best to find a good foreclosure help consultant that can help you avoid the foreclosure process and save the home early on. The foreclosure help advisor can negotiate with the lenders to avoid the stage where the full payment is the only recourse. Find the best foreclosure help consultant that can assist you and avoid foreclosure of your home altogether.
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