A foreclosure is the legal
process where your mortgage company obtains ownership of your home (i.e.,
repossess the property). A foreclosure occurs when the homeowner has failed to
make payments and has defaulted or violated the terms of their mortgage loan.
There are two main types
In both types of
foreclosure, the homeowner receives the legal notice of foreclosure, the legal
notice is published in the local paper (in most cases), and the home is sold at
public auction. (For judicial foreclosures, you’ll be served with legal notice
of the pending action, and the court will approve or set the foreclosure date
– supervised by a court with formal legal proceedings (civil law suit)
– non-court supervised
A foreclosure can
usually be avoided—even if you already received a foreclosure notice.
Walking away from your
home voluntarily, may seem like the best solution when your home is valued
lower than what you owe. However, this action may lead to financial
consequences in the future. In some states, you may be required to pay a
portion of your mortgage debt even after the home has entered foreclosure.
Also, the impact to your credit may make it difficult to rent or purchase a
home in the future. It may be best to explore other options to foreclosure with
your mortgage company before making a decision to leave your home.
Keep in mind, your
mortgage company doesn’t want to foreclose on your home. Just like there are
consequences for you, the foreclosure process is time-consuming and expensive
for them. They want to work with you to resolve the situation. However, some
homeowners simply don’t take advantage of the help available and foreclosure
becomes the only option.
Contact your local Citizens Mortgage Relief representative for more information and options to avoid foreclosure at 973-378-3030.