It is essential for anyone facing foreclosure to consult with a foreclosure attorney at The Law Offices of Emil Fleysher, P.A. before giving up and surrendering their home or investment property. You may have options to save your home or maximize your transition of ownership.
What is Foreclosure?
Foreclosure is a legal process where a lender or a subsequent loan officer can seize and sell a person’s property to repay a debt. You are at risk of defaulting if you fall far behind in your mortgage payments. You are also at risk of defaulting if you, as the borrower, fail to meet other terms set out in the mortgage contract.
The foreclosure process varies from state to state; however, lenders are usually willing to work with borrowers to help them catch up on their payments and avoid a foreclosure sale. Schedule a free consultation with a foreclosure attorney to learn more about the foreclosure process in detail.
How the Foreclosure Process Begins
A mortgage is a contract between a lender and a borrower. Under this contract, lenders have the right to use the subject property as collateral if the borrower defaults on the terms of the mortgage or promissory note. The most common default trigger is failure to make scheduled monthly payments.
First, the lender issues a delinquency notice indicating that the payments have not been received. If the borrower falls behind and doesn’t make several payments, the lender may issue a letter accelerating the mortgage and requiring it be paid in full before a foreclosure is initiated. While the acceleration letter is more serious than a missed payment notice, lenders at that time are typically still willing to work with you and make arrangements to help you catch up on your missed payments.
Notice of Default
After 90 days have passed without payment, the lender will typically send a notice of default. The loan is then handed over to the lender’s foreclosure department and the borrower has an additional 30 days to settle the payments and reinstate the loan. When the end of the reinstatement period has been reached, the lender will begin the foreclosure process if the homeowner still has not caught up on their missed payments. A foreclosure attorney can assist you in learning more about how to avoid going into default.
The Length of the Foreclosure Process
The average number of days in the foreclosure process varies from state to state. Hawaii, Indiana, and New York are some of the states with the longest number of days for properties foreclosed in the second quarter of 2021. The states with the shortest average times to foreclose in the same period were Arkansas, Tennessee, and Wyoming. A foreclosure attorney can explain the different factors that account for the length of the foreclosure process.
How to Avoid Foreclosure
There are several ways for a borrower to avoid foreclosure, regardless of the number of payments that have been missed. One alternative is reinstatement, where the borrower repays what they owe before a specific date is reached. Borrowers can also take advantage of the short finance option, where a new loan amount is selected for the borrower to pay. The lender may forgive the difference to help the borrower avoid foreclosure. Another alternative is a special forbearance, where the lender agrees to reduce or suspend payments for a set amount of time based on the borrower’s temporary hardship.
Contact a Foreclosure Attorney Today
Emil Fleysher is the foreclosure attorney that can offer high-quality professionalism and responsiveness in the foreclosure process. Call our office today at 888-886-0020 or complete our contact form online.