So now the unfortunate has happened to you and you have no choice but to allow the foreclosure proceedings to begin on your home. Now what? How long will this process take? When should you leave the house? We’ll examine the answers to those questions in our article.
It is important to note that each state; And perhaps even each county within a state may have its own specific laws and procedures when it comes to foreclosures. You may want to check with your own local government about yours. However, we can give you a general idea of what you can expect to happen. First; If you haven’t reached this point yet (where your home is already in foreclosure), you may have some leeway. Most lenders don’t start the process until the homeowner is three to six months behind on their payments. If you are nearing the brink of this deadline, there may still be other options for you besides foreclosure.
There are two basic types of foreclosure. The rate at which your lender pursues your foreclosure can have an effect on the speed of the overall process. The most common of these two types is the power of foreclosure. In this method of foreclosure, the mortgage lender usually holds the deed of trust for your home. When you default on your payments; he or she has the legal authority to sell your home. This is most often done at auction. In this method of foreclosure, the proceedings move quite quickly, forcing you to have to leave your home much earlier.
The other type of foreclosure method is judicial foreclosure, which is most often the required method in many states in the United States. This method requires a court to monitor your foreclosure proceedings. The process that is necessary to obtain a judicial foreclosure is similar to that of an average civil lawsuit. This type of foreclosure can take at least a year; sometimes even more, to complete. This can buy you some time; possibly allowing you to get the money to stop foreclosure proceedings altogether. However, it’s infinitely better not to get to this point in the first place if you can help it.
As a last resort, you can choose to file for bankruptcy, as this will immediately stop any foreclosure proceedings. Depending on the type of bankruptcy you choose; Chapter 13, for example, would not be forced to leave your home and could even catch up on missing mortgage payments. The bad part is that you will now get your hands on the stigma that is often associated with bankruptcy. If you feel you can bear it; bankruptcy may be a viable option for you. If you choose this method to stop your foreclosure proceedings, you should probably consult with your attorney first. He or she can best advise you on how to go through with this.