What is the basic process of a foreclosure?
The foreclosure process is initiated when mortgage payments or tax and insurance payments are delinquent. If payments are not made-up within a specific period of time, the lender refers the delinquent file to an attorney who begins the legal foreclosure process. The attorney will publish the foreclosure notice (where?) for six weeks and serve notice to the owner in possession of the property. At that point, the mortgage holder can reinstate the delinquent balance. If payments are not received, a Sheriff's Sale is scheduled to be held at the county sheriff's office to recover the full amount of the mortgage. Following the Sheriff's Sale, there is a six month period known as the Redemption Period. During the Redemption Period the mortgage holder has the option to pay off the entire mortgage.
If the property is vacant, the lender has the option to reduce the redemption period to five weeks. In certain circumstances the redemption period may be as long as 12 months.
My property has gone to the sheriff sale. Do I still own it?
Yes. At the Sheriff Sale the lender or an investor typically will purchase the certificate to the property. The mortgage holder still owns the property during the Redemption Period and may sell it or refinance. If neither is done during the Redemption Period, the property will go to whoever bought the certificate at the Sherriff’s Sale.
I sent in my past due payments and they were returned
Once a Sheriff Sale has been scheduled, the lender may choose to only accept full payment for the balance of the mortgage. For example, if the mortgage holder is four months past due and sent in only three payments, the lender may return the check if they have decided to only accept only full payment, which in this case is four months past due payments, not three.
I owe more on my house than my property is worth. Can I sell?
Some mortgage companies have programs which allow the mortgage holder to sell their home and pay the mortgage company the proceeds from the sale even if it is less than the total obligation. Tim's Citywide Team specializes in negotiating "short-sales" with lenders’ loss mitigation departments.
|
|
