If you are anticipating missing your mortgage payment because you think you will not have the money it is important to understand the steps of foreclosure. The best way to avoid foreclosure is to start by understanding the process. There are four major steps throughout the process which include the notice of default, the acceleration, the notice of sale, and the auction.
If you really want to keep your home you should consider talking to someone about mortgage help. For some banks, the foreclosure process can start immediately upon missing your first payment. This does usually depend on how long you have paid on your bank loan and how consistent and on time you have been with your payments. In most cases the process can take from 6 – 9 months, depending on how many homes are foreclosing in your area.
The first thing that will happen when you miss your first payment is a notice of default. During this process you do have the option to stop foreclosure now. You should keep in touch with your lender and tell them you wish to avoid foreclosure. They may have a form of loss mitigation like a loan modification or another form of mortgage help they can offer to you. Some banks will wait until you are three full months behind on your payments before they send out a notice of default and start the foreclosure process.
The next step of a foreclosure will be the notice of acceleration. The notice of default usually comes a couple of weeks or a month after you have received the notice of default. The notice of default gives you time to contact the bank and work with them to avoid foreclosure. If you have not talked to the lender about ways to avoid foreclosure or methods of mortgage help they will send the notice of acceleration. At this point in time you might have a chance to keep your home but you will need to have all of the payments in hand and be able to pay off all of the fees. The lender may want to review your financial situation also.
A notice of sale is the date the lender intends to sell your home at the county courthouse to the public in an auction. Foreclosed homes are all sold the same, on the steps in front of the county courthouse. The notice of sale will have the date and time the auction will take place. If you want to avoid foreclosure, at this point you might be able to find a buyer to purchase your home at the auction or try to file for bankruptcy to postpone the sale. This will allow you to stop foreclosure now.
Once your home goes to the public auction because you couldn‘t pay for your mortgage payments you will not be able to avoid foreclosure. Unless you are the one who purchases the home at the auction or you have found someone who is going to buy it for you.
"..... The notice of sale will have the date and time the auction will take place....."
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