A foreclosure is a process where a mortgage company ends up with ownership of your home. This usually occurs when you have failed to make payments or violated the terms of your mortgage plan. Every three months, about 250,000 families have their homes taken by mortgage companies. Here are the things you need to know about the foreclosure process and how to stop foreclosure.

What Triggers Foreclosure?

When you purchase a home through a mortgage, you will usually put up the home as collateral for the loan. This means if you stop making payments, your lender can foreclose on the home. They will essentially repossess it and evict you so they can sell the property and recover their money. There are two basic types of foreclosure. These are judicial and non-judicial foreclosures. As you might have imagined, a judicial foreclosure involves the lender filing a lawsuit that initiates the foreclosure process. On the other hand, a non-judicial foreclosure relies on a power-of-sale clause that comes as part of the mortgage.

Foreclosure Notices

Once you stop making payments, the lender will send you a notice. In most instances, a lender will initiate the foreclosure process after you have missed at least three payments. Once that happens, they can issue a letter of demand. This letter usually requires payment within a month. If you still fail to make the payment, the lender will consider your loan to be in default. They will then hand your offer to their attorney.

How to Stop Foreclosure

In a judicial state, the lender will first appeal to the courts before they foreclose. This process generally takes longer, usually lasting anywhere from 30 to 90 days. The only way to stop foreclosure in such instances is to win the case in court.

On the other hand, in non-judicial states, the foreclosure process does not involve a judge. It’s important to learn this process of how to stop foreclosure. All the lender needs to do is issue you with a written notice to make the payment. If you fail to make the necessary payments, the lender will then send a “Notice of Default” and a “Notice of Sale.” If you want to fight the case, you can bring legal action against the lender in court. In some cases, you can stop the process, and you will be given time to make all of your missed payments together with the legal fees and penalties.

The foreclosure process differs depending on the state you are in. This also means the process of how to stop foreclosure varies with the state as well. If you need help stopping the foreclosure process by selling your home, you can get in touch with us today at 732-384-1254.