The Phases Of The Foreclosure Process

Author: Sal Farzin
The mortgage foreclosure process can be quite overwhelming for a lot of people. Especially, if they themselves are facing this type of situation. In this article, we'll cover the steps that the lenders can take as far as the mortgage foreclosure process is concerned. This may vary from state to state. The laws as to the conditions involved in the filing of the Notice of Default can be different in every state. Here are examples of the mails you could receive should you miss a mortgage payment or two:

1. Missed Payment - this notice usually arrives when you miss a mortgage payment on any given month. Payment has to be in during the first day of the month. However, banks give a grace period up until the 15th. Otherwise, you would have to pay for a late fee.

2. Demand Letter - Demand letter is sent to homeowners when two payments are missed. The time frame before a demand letter is written up is usually 60 days. The lender is still willing to work with the homeowner at this point. However, the borrower should remit payment within 30 days.

3. Notice of Default - Also called as NOD, this letter is sent 90 days after payments are missed payments. Here, your loan will be transferred to the foreclosure department of the lender in the same county where the property is situated. The borrower is informed and the Notice will be recorded. The letter may arrive within 10 days after the Notice is filed. Another 90 days will be given to let the borrower to settle his obligations.

4. Notice of Trustee's Sale - If after 90 days and you still have not sent in the payment for your delinquency, a notice of trustee sale will be recorded from the same county of filing. The lender would now initiate the process involved with the sell of your property. It would usually take 21 days. The borrower would also receive a copy of the letter for reference.

5. Trustee's Sale - Also known as Sheriff's sale, this indicates that the property is already advertised at a public auction. It would be sold anytime an interested buyer surfaces.

6. REO - REO means real-estate owned. This correspondence indicates that the property is not sold during the auction. It would then be forwarded to a broker to further sell it to the general public.

7. Eviction from Property - The default homeowner can stay in the property for as long as it still hasn't sold. But once it does, an eviction notice would arrive telling you that you have to vacate the premises immediately as another person already owns the property.
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