Are the bills beginning to pile up? Is your credit card debt becoming unmanageable? Are you using one credit card to pay another one off? Are you using credit cards to by the necessities of life, like groceries or gas for your car?
When even the little things begin to add up, some of your biggest bills might seem completely unmanageable. That’s when you know your house payment is at risk, and its time to find a way out.
Many people think it won’t happen to them. Yet the news is filled with stories of people losing homes they’ve been in for years. It can happen to you. Here’s a look at the process.
Month one
When you miss your first payment, your lender will contact you by letter, phone or both.
Month two
Your lender will send a letter and follow up with a phone call. It’s important not to ignore the phone calls. Talk with your lender and explain your situation. Do you see a change in the future? If you lost your job, and will begin a new job in a week or two, tell your lender. They will work with you if they know the full story.
Month three
After the third missed payment, your lender has the right to begin foreclosure. The lender will send a demand letter announcing their intent to foreclose. If you do not pay the specified amount or make arrangements by the time given, foreclosure proceedings will begin. Even at this level, you can still work arrangements out with your lender. Explain the situation, and see what you can do to work out a payment plan.
Month four
If you have not taken action at this point, your lender will refer your case to the lender’s attorneys. You will incur all attorney fees at this point, and be required to pay them as well in order to bring your loan back to original status.
Public Trustee’s Sale
The attorney will schedule the sale, and will notify all parties of the details. This is the actual day of foreclosure. This typically will be about a 2 to 3 month process, and will be sent to you by mail, be posted to your door, and be listed in a local paper. You will have until the date of sale to make arrangements with your lender for restitution, and pay all fees incurred, including attorney fees.
Redemption Period
Your lender may grant a redemption period, giving you an additional 75 days after the sale to redeem the property and pay all fees.
