Foreclosure happens when a borrower misses to payback several loan payments. Then the lender or the bank can take control over the property for the failing payments. This shows a shift of home ownership from the owner to the lender.
Foreclosure Procedure
From the first time you have missed the loan payment to the time of sale of foreclosure homes, there are several steps involved in the process that we will discuss here. Though each state has its ways of implementing the procedure generally, they all follow the same structure.
1. Missed Loan Payments: A few days delay in the payment won’t result in foreclosure. You can get a grace period of few days/weeks by your lender without adding any penalty. The lender will charge you a penalty or a late fee along with a warning after the grace period is over.
2. Default Notice: You will become a defaulter by not paying the loan amount even after the grace period. After 3 months or 6 months, your lender will issue a Notice of Default with the local recorder’s office in your name. Depending on your state, the notice may also be posted on your front door. This notice could also affect your Credit Report. You still have the chance of stopping the foreclosure of your house by putting up with the payments.
3. Pre-Foreclosure: The duration between the Notice of Default and the sale of the house is the Pre-foreclosure. During this time you have the chance to get a hold of the payment mentioned in the Notice of Default and stop the foreclosure of your house. The exact time depends on your state.
4. Sale Notice: Even after all the time provided, you are not able to payback the loan amount, the lender has the right to issue a notice of sale. The sale notice reflects the time and place for the auction of your house. The sale notice is published depending on your state.
5. Eviction: After the whole process of auction and sale of your house you will get some time to collect money and shift to a new place. The legal enforcement personnel have the legal authority to remove you with your belongings from the premises if you do not voluntarily move with all your belongings.
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How to Stop Foreclosure Near Me
| Region | States/Cities | How to Stop Foreclosure Near You |
|---|---|---|
| Northeast | States | Connecticut | Maine | Massachusetts | New Hampshire | New Jersey | New York | Pennsylvania | Rhode Island | Vermont |
| Midwest | States | Illinois | Indiana | Iowa | Kansas | Michigan | Minnesota | Missouri | Nebraska | North Dakota | Ohio | South Dakota | Wisconsin |
| South | States | Alabama | Arkansas | Delaware | Florida | Georgia | Kentucky | Louisiana | Maryland | Mississippi | North Carolina | Oklahoma | South Carolina | Tennessee | Texas | Virginia | West Virginia |
| West | States | Alaska | Arizona | California | Colorado | Hawaii | Idaho | Montana | Nevada | New Mexico | Oregon | Utah | Washington |
