The Steps to Foreclosure

If you are one of the many individuals caught in the financial crisis of our current economy, you may also be facing the possibility of foreclosure on your home. This list of steps and tips may help you prepare yourself along the way.

If you have missed one mortgage payment, you will probably receive a Notice of Default from your lender. It is extremely important that you stay in touch with your lender, letting them know your financial position. If you only need help to get by on the next few payments, a lender is usually very willing to help you work something out. If it looks like you have no choice but to let your home go, put it up for sale right away in hopes of turning your investment around before foreclosure.

The next part of the process will be a Notice of Acceleration from the lender. This notice gives you the opportunity to bring your loan up-to-date before the lender starts foreclosure papers. This notice will let you know that if you cannot bring your loan to current status, they plan to take ownership.

Your lender will now be required to give you a Notice of Sale, which will include an intended date and time. This will be the extent of time you have left to bring your loan to current status, or have your home sold and closed prior to that date and time.

During these steps, remember that you have other options you can look into, such as forbearance, mortgage modifications, and even a Deed in Lieu of Foreclosure. Any one of these options would be recommended to help hold your credit in better standing. The important thing is to show interest and take action before it is too late to correct the problem.