Q. What is a foreclosure?
A. When a borrower (home owner) has been unable to make payments on his mortgage loan, the lender may determine the loan has is in default and will proceed with legal action to take control of the property. Any equity the homeowner may have realized in the home is lost, and the homeowner may have to vacate the premises. Laws on the amount of time a homeowner has before a lender can start foreclosure proceedings vary form state to state.
Q. I just received a notice of foreclosure. How long do I have to make my decision on what to do?
A. When it comes to dealing with late mortgage payments, time is not your friend. The sooner you act - the better. Your lender will be much more confident in your willingness to make payments on your mortgage if you deal with the situation immediately, rather than waiting until your back is against the wall. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use, but it is imperative that you take action as quickly as possible.
Q. May I negotiate with my bank on my own?
A. If you are only a payment or two behind, you may try to discuss your difficulties with your lender on your own behalf and hope to work out a favorable arrangement. However, if your lender is not educated on loan renegotiation, or simply is not willing to speak wity you, then it is the time to contact a professional organization. It is not recommened to wait for more than a 10 days. Time is not on your side in these matters. We provide the professional representation that you need to achieve the best solution with your bank.
Q. How long is this going to take?
A. Working with your lender to reach a suitable arrangement can take anywhere from a few days to several months. It all depends on your current financial position, and whether or not foreclosure proceedings have already been started. Typically, it takes several weeks to complete a workout agreement and stop foreclosure proceedings.