The foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. If the owner cannot pay off the outstanding debt or sell it via short sale, the property then goes to a foreclosure auction.
Here are the five stages of foreclosure on which you can start to work any best option depending on your situation:
- Behind on Payments: the foreclosure starts when a borrower fails to make timely mortgage payments. This is usually due to hardships such as unemployment, divorce, death, medical challenges or because the property might be underwater.
- Public Notice: three to six months after missed payments, the lender records a public notice with the County Recorder’s Office, indicating the borrower has defaulted on his mortgage.
- Pre-foreclosure: this is the grace period for the borrower after receiving Notice of Default from the lender to make an arrangement with the lender to avoid eviction or sale.
- Auction: if the default is not remedied by the deadline, the lender or its representative sets a date for the home to be sold.
- Post-Foreclosure: a third party purchases the property at the foreclosure auction or if not, the lender takes ownership of it.
Some alternatives that you can consider during the foreclosure process are the following:
- Loan Modification
- Payment Plan
- Bankruptcy
- Short Sales
- Deed in Lieu
In any of these five stages of the foreclosure and/or for any of the possible alternatives to the foreclosure you can contract the legal services with Vellon Law Firm and we can work your situation and assure you to provide a quality service that you need during this process.