What Happens if my House Goes Into Foreclosure?
Filed Under (Foreclosures) by admin on 15-02-2010
If you have missed a few payments and your house goes into foreclosure there are a few things you can do. The most important thing you need to do is remain in touch with the bank at all times. No matter how annoying the lender seems to be and no matter how many times you have repeated your story to the bank, keep talking to them.
If you have missed a few payments on your mortgage and received a notice of default, don’t panic. Many people panic because they think their home is now lost and there is nothing they can do. They cut off communication with the bank and think the bank is coming after them for the full amount of the loan after they kick them out. You don’t have to move out of your home as soon as the foreclosure process occurs. Answer the phone when your lender calls or pick up the phone and call them. Tell the bank exactly why you have missed a few payments and be clear to them you want to keep your home.
The bank will work with you if you tell them you want to keep your home and you do everything you can to get caught up on the payments. If you are unable to get caught up on the payments and you know you are going to lose your home then there is still a process that must be followed legally. The process of a foreclosure will take from six months to a year to complete. Don’t pack up and move out right away. Use this time to save up as much money as you can before you have to move out of the home. You have up until the date of the auction to live on the property and no one will remove you from the property until then.
If your house goes into the foreclosure process, you can still stop a foreclosure from appearing on your credit report. Put your home up for sale and see if you can sell it. If you can sell the property for the amount you owe on the loan then you will be in good shape. Ask your bank if they will agree to a short sale. You might also ask about a deed in lieu. These are options you might choose from to stop a foreclosure from appearing on your credit report.
