How The Foreclosure Process Works In Its Basic Form
Foreclosure is a term that is much heard today and for most people it means having to lose their home because they could not keep up with the mortgage payments. However, a lot of people may not know what goes on in the foreclosure process which in any case is a long drawn out process in which the lender may even try and make a stab at pre-foreclosure. So, once you miss out on your first payment, you can expect to receive a late payment notice from the lender and should you then ignore this notice and miss out on the next payment, you will then get another notice of delayed payment sent to you by the lender.
Acceleration Clause
Finally, if you continue to play truant with your mortgage payments, the lender would have no option but to demand payment in full, which is sure to be a part of your mortgage stipulation under an acceleration clause that is usually standard procedure in most mortgage contracts. When you reach this stage in the foreclosure process, you will need to pay the balance of the mortgage plus whatever late payments, and legal fees and even late fee penalties as well, and after the acceleration clause has been set into action, you will have no choice but to pay in full and foreclosure process will formally begin.
The first step in this foreclosure process would be to receive from the lender a certified letter of foreclosure which may be served to you either by a processor or by a local sheriff. Following this, the lender will also, as part of the foreclosure process, publish in a newspaper a legal notice informing about pending foreclosure, and you may want to work something out with the lender, though the lender will probably not settle for anything less than full payment.
Next, there is a court date set by which time you and the lender as too any other person with financial interest in your property need to attend the court, which will then issue foreclosure to the lender. Once the lender gets this foreclosure notice, he or she will then publish notice of foreclosure in the paper and list a date for auctioning of the property. You can still try and work out something with the bank and come to a settlement till the auction date comes around.
This part of the foreclosure process is known variously as auction, foreclosure sale or sheriff's sale and is open to anyone, though anyone interested must have to make a minimum deposit and also has the financing ready to get hold of the property.
