When does the foreclosure process start?

Though the time period varies, usually six months or 180 days of missed payments means you are on your way to foreclosure and eviction. During this period, the lender will try to communicate with you through various means. If you refuse to get in touch with them or respond to their warnings, the foreclosure process is unavoidable.

Should you ignore the foreclosure notices?

That would be a huge mistake, almost every time. The question might also be: can I ignore foreclosure notes? Rather than ignoring the notices, you should open them and scrutinize the contents. It is quite possible that some government agency or non profit organization is trying to communicate with you in order to extend a helping hand. Moreover, even if you are trying to broker a deal with the lender to avoid foreclosure, the court provides you with a limited time period of 28 days to issue a response to the received legal notice.

Does the foreclosure notice mean everything is over?

Not really, you still have a chance to recover. Communicate with your lender or your mortgage broker. There are multiple ways in which a foreclosure can be avoided. 

Can third parties mediate and help you avoid foreclosure?

Absolutely not. You might have come across an advertisement claiming that a concerned person or group can help you in avoiding foreclosure; perhaps they have been trying to solicit you. Do not trust such advertisements. Your lender or your mortgage brokers are the only people who can help you in this regard. Not for profit organizations and certain governmental agencies can also be trusted, but not third parties.

Should you believe everything you receive in the mail?

Not at all. Let’s say a letter arrives and states that you have qualified for a government rescue program and they are asking for money. Is this legitimate? Should you trust this source? No, this is a scam. A government agency will not ask you for any money if it is attempting to offer you some support.

Who bears the foreclosure related costs?

Once the property is in the foreclosure market, whoever decides to buy it has to bear the foreclosure costs and fees. For instance, if you are able to salvage your property which is about to be foreclosed and is under notice, you will be responsible for paying the costs and fees to the lender. If someone else decides to buy your property, that person will bear the expenses.

Can bankruptcy declaration prevent foreclosure?

Yes, if you declare bankruptcy, you can prevent the foreclosure process and prevent yourself from being evicted. But the benefits do not outweigh the costs since a bankruptcy declaration has a long lasting negative impact on your financial life. Thus always avoid declaring bankruptcy as a means to avoid foreclosure if you can. This is decision with sever consequences so it is wise to discuss your options with an expert.

Should you stay in your house during the foreclosure process?

Absolutely! Even if your house is being foreclosed never leave your house until you receive the eviction notice. You might lose some of your privileges if you do so.

How long does the foreclosure process last?

If no attempt is made to stop the foreclosure process, the entire process should be over in about a four month period. This may vary from state to state.