As a homeowner, the possibility of a foreclosure can be overwhelming. It is vital to understand the timeline of the foreclosure process in order to better understand the options that may be available to you moving forward. The process begins when a payment is missed on Day 1.
Day 2 to 36:
Once you miss a payment it is considered delinquent the next day. Your lender is then able to immediately process late charges and other fees associated with a missed payment. When you miss your payment, your lender must directly contact you to inform you of your options. There are programs designed to provide assistance to you to help you avoid losing your home. Some options are through the state while others are directly through your mortgage company. We can help you evaluate the different options presented to help you choose the best choice for you and your family.
Day 45 to 121:
By Day 45, your lender must give you a single contact and must provide a written notification of the delinquency in your loan. In addition, they are required to provide you with mitigation options. If you have a mortgage with one of the five major service providers, you will be assigned an agent from a law firm to negotiation with you as the homeowner. The mortgage companies who will go through this process are Bank of America, Chase, GMAC/Ally, Wells Fargo and Chase. During this process, it is essential to have legal counsel to represent your needs. While serving as your legal counsel we will ensure an affordable agreement is reached for you.
After Day 121
If no agreement is reached by the 121stday, then the foreclosure process starts. Part of the process is the scheduling of a sheriff’s sale. The scheduled date will have to be published for four weeks in the county newspaper. The sales date along with details of the debt will be included in the publication. Additionally, a notice of the sale must be posted on the property within two weeks of the newspaper publication. During this timeframe, you still have a chance to save your home by filing a loss mitigation application. We can help you with all the application paperwork.
Six months from the Sheriff Sale is the Redemption Period. The title from the Sheriff Sale is transferred subject to the redemption rights of the homeowner. A homeowner has redemption rights to get the home back after the auction by paying the mortgage, interest, fees, court costs and attorney fees associated with the sale. At the end of the redemption period, the homeowner is evicted if still living in the home without paying the items outlined above. During the six-month window, the purchaser from the Sheriff Sale is allowed to inspect the property even if someone is living there.
The timeline outlined above gives you insight into how the foreclosure process takes place. It is important to avoid foreclosure if possible. A foreclosure will have a major impact on your credit, so it is imperative to hire a qualified foreclosure real estate attorney to assist you. We will help you understand other options available to you during this period.
One option people sometimes examine when facing foreclosure is bankruptcy. As your legal counsel, we will go over the differences between Chapter 7 and Chapter 13 bankruptcy to help you decide if one will work for you. When you file for Chapter 7 the foreclosure process is typically delayed while Chapter 13 may allow you to enter into a repayment plan for your mortgage.
Our team at Grewal Law PLLC is ready to help you explore the different options available from loan modifications to filing for bankruptcy. We will do everything possible to help you save your home. Call us for your no obligation quote at (888) 211-5798.