subject: Knowing when the foreclosure process starts in your State [print this page] Knowing when the foreclosure process starts in your State
Many homeowners are either facing foreclosure or maybe in jeopardy of falling into foreclosure. There are always a lot of questions about the foreclosure process that people do not know the answers to. This article will discuss some of the basic things you should know if you are in foreclosure or you are about to fall into foreclosure.
How many payments behind do I have to be before I receive a foreclosure notice? It will depend on your state and depending if your state uses mortgages or deeds of trust for the purchase of real property. Usually, states that use mortgages conduct judicial foreclosures; states that use deeds of trust conduct non-judicial foreclosures. The principal difference between the two is that the judicial procedure requires court action on a foreclosed home.
What does it mean if I am in a judicial state? If you live say in Connecticut, they use the judicial process to foreclose on a property, meaning they go through the courts to foreclose on a home. Again the timeline will vary from state to state.
What if I am in a non judicial state? If you live in Tennessee the foreclosure process will be handled by an attorney, you will receive notice from the lender and the attorney's office letting you know you are past due and you may be facing foreclosure if you do not make arrangements.
In some states they are both a non judicial and a judicial, meaning if you are behind you will receive notices from the lender, attorney's lender and the courts.
When will I get served a foreclosure sale date or auction date notice? If you are at the point where you cannot get caught up and you are letting the house go to foreclosure you will receive a notice what is commonly called Auction Date notice. This means the lender is going to sell the home to the highest bidder on such a date predetermined by the courts and lender's attorney. This notice will be served two different ways, again depending on what state you live in you will receive a trustee notice or a sheriff will serve you the notice.
What if I am in a loan modification but have an auction date? In most cases the lender and lender's attorney will work to postpone the sale date (auction date) of your home. The lenders really do not want your home, but in some cases it makes more financial sense for them to take the house back. If you are denied for your loan modification or if you where in foreclosure but received a loan modification, and broke the plan you will end up in foreclosure again and a sale date will be assigned within a few weeks.
