Are you behind on your Mortgage Payments or Homeowners Association (HOA) fees and fearful of losing your home? You do have options. The first thing you should do is to contact your mortgage company immediately. The sooner you inform them of your current situation the better.
The foreclosure process will move very quickly. After the Notice of Default has been recorded, you have a three month period to remedy the deficiency. If this is not done, a Notice of Trustee Sale may be recorded, scheduling an auction date for the property.
Here are some questions and answers that will help you understand the process:
Q: What Happens When I Miss My Mortgage Payments?
Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe your lender an additional amount. Before any of this can happen, a Notice of Default will be recorded and you will have a three month period to remedy the deficiency. If this is not done, a Notice of Trustee Sale may be recorded, scheduling an auction date for the property. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if possible.
Q: What Should I Do?
1. DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call or write to your lender's Loss Mitigation Department without delay. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.
2. Stay in your home for now. You may not qualify for assistance if you abandon your property.
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