When a homeowner starts getting delinquent on their mortgage payments, or maybe they have been late for multiple months in a row, many things could happen, but one thing is certain- the foreclosure process has begun.
This is when a bank will start taking steps to get their money back, and you, as a homeowner, could be facing some consequences of these actions if you do not take action yourself. To find out more about foreclosure and how you can tackle it, visit Roemerman Law.
Five different types of foreclosure proceedings can happen:
One step in the foreclosure process is when your home will be put up for auction. This happens when a bank cannot contact you, and they want to try and recoup their money as quickly as possible. You may receive some notice around this time, or it could happen without any warning, which means that if you are interested in buying back your home, you will need to act fast.
Foreclosure by Sale
If the previous step fails, then your home is put up for sale, and all of the homeowners in your neighbourhood are notified that an open house will be happening soon. An auctioneer conducts this empty house to encourage people to bid on any intriguing property or could be a good investment.
Foreclosure by Foreclosures
If both of these steps fail, your home goes up for foreclosure sales when the bank sells your home to another party for less than what you owe. This means that if someone buys your house at this point, they get everything, including all of the appliances and fixtures inside.
Foreclosure by Confession
If a homeowner is behind on their mortgage payments and a bank is trying to contact them about it, the homeowners may choose to find out what exactly happens when they go into foreclosure. The homeowner can call up their lender and ask for this information, or they could even write a letter asking for more details if that would be easier.
Foreclosure by Abandonment
If none of these steps has worked, your home is considered abandoned, and it goes up for auction after the bank gets some notification that you are no longer living at the property. This can happen if you have been out of contact with your lender for more than three months, which banks typically require before declaring a house abandoned.
After foreclosure proceedings begin, the homeowner has only a short amount of time to act if they want to save their home from being sold or taken by another party.