When to File for Foreclosure

Foreclosure can happen to anyone, and is a scary thing. There are two ways you can file for foreclosure. One is the strict foreclosure and the other is foreclosure by sale.

In strict foreclosure, a judge sets a day for you to pay, or lose the rights to your property. The decision on the length of time is up to the judge and will vary. At that point you can sell your home or borrow the money and pay off the loan.

There is also foreclosure by sale. This means that a judge sets a sale date and an attorney, appointed by the court, auctions off the property. This can also be stopped by paying the fees that were incurred and pay off the debt.

Before filing for foreclosure, you should try to sell your property. You should be sure to find a buyer that will give you enough money to cover your debt.

If you have not been able to pay your mortgage, you should talk to your lender about how you can stay in your home. Sometimes you can work something out with them before you file foreclosure.

The homeowner does not do the filing in a foreclosure situation. The lender will start the foreclosure procedure after the homeowner misses 3-6 months of mortgage payments. So a homeowner should do all they can to avoid foreclosure and find out what options they have rather than watching their home being sold out from under them.