Very often, when someone contacts a loan modification attorney they really do not understand how the foreclosure process works or how to stop it. People who do not understand foreclosure proceedings are often scared, timid and unwilling to do what it takes to stay in their homes. Many think that if they just ignore their lenders, they will go away. However, inaction is not any way to respond to a potential foreclosure. The only way to mount a successful defense to foreclosure proceedings is to know how the process works, and talk to the loan modification attorneys who know how to stop it.
The first step in the foreclosure process begins when a lender files a “Notice of Default” with the county recorder. This often proceeds a period of non-payment by the borrower, meaning the homeowner is defaulting on the loan by not making payments. This notice is mailed to the borrower and any other affected parties. This is in no way the end of the process; in fact, up to five business days before the trustee’s sale, the borrower can pay off the default amount plus any addition fees and/or fines and stop the foreclosure process. Obviously, very few people can simply cough up the thousands or tens of thousands of dollars it would take to pay this amount.
The second step comes ninety days after the Notice of Default is recorded. A “Notice of Sale” must be posted on the property and in one local public location, such as a library or town hall. The Notice of Sale is also published once a week for three weeks in a newspaper of some sort in the area. The Notice of Sale must clearly state the date, time and location of the sale, as well as the property address, the trustee’s contact information and any other pertinent information.
Step three usually occurs about four months after the foreclosure process began. The Trustee Sale Auction is held as a public auction at the time and place designated by the Notice of Sale. It is conducted by the lender’s representative, almost always an attorney, and the successful bidder must pay immediately with cash or a cashier’s check. The lender often bids in the amount of the balance due plus costs. If no one else bids (which is usually the case these days), the property reverts to the lender.
Contrary to popular belief, the lender or bank you got your mortgage from does not want your house back. The entire foreclosure process costs the lender far more than it is worth. The lender is not only losing money on the four months you aren’t paying your mortgage, but will most likely lose money paid to the attorney who runs the auction. A loan modification attorney can help you avoid foreclosure and stay in your home. Both you and your lender are interested in you keeping your home, and a loan modification attorney can help you avoid the headache, heartache and embarrassment of a foreclosure.
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