subject: How A Foreclosure Process Proceeds [print this page] Often there are cases when a person is not able to make the mortgage payments. The next step that takes place is the foreclosure of the property. There are different rules for this process in different states but the basic process is the same. Here is a basic idea about what all happens when a person is caught in financial crises and misses his mortgages.
Any situation like the loss of job or a serious illness may result in financial crises. A person having the slightest idea of the possibility of financial crises should apply for a financial help before the situation becomes out of control. He may negotiate with the lender to miss a few initial payments or lower the rate for them which will be paid when a balance in the finance is achieved. It is understandable if someone is not able to pay 1 or 2 mortgage payments and the person is in contact with the lender to explain the situation. However, if three payments are consecutively missed, the lender will have to begin the foreclosure process California to sell the house for the recovery of the defaulted loan. This is done by public auctioning.
Generally banks do not pursue the foreclosure process on their own but hire local lawyers to file the paper work in the local court and publish notice in newspapers. These lawyers will make efforts to contact the defaulter to let him know the status of the process and arrange for mortgage to be paid back. If, however, the homeowner is not able to make the payment, he will have to attend court proceedings. Then according to the condition, the court may give them some more time to arrange for the money and prevent the foreclosure process California. But many people are unaware of this fact and will miss the court hearings with a fear of getting sent to the prison there and then.
As soon as the notification of the property for sale appears in the newspaper, the person will no longer be the owner of the house. This is called a sheriff sale and it can be stopped if the court finds it realistic to give some more time to the defaulter. Either a third party or the bank itself will purchase the property back. After the sale, the defaulters are not allowed to live in the house but they can ask for a redemption period in which they can stay in the house and make attempts to pay off the due, however, the bank will remain the owner during this time. But some states dont have the provision of a redemption period. Instead, they have an eviction period in which they are ordered to leave the possession of the house on or before a set date.
During this process also, the defaulter is called to appear in the court which is a chance for him to ask for some time to search for another place to live in. So leaving the possession of the property cannot be prevented but it can be delayed for a weak or a month depending upon the laws of the state.
