Foreclosure law can be complex. Each state has different laws when it comes to foreclosure. For example, in some states, a trial is held; in others, it is not. Understanding the foreclosure process can help you to navigate the situation better. Here is what you can expect in a foreclosure situation.
1. Missed Payments
No matter where you live in the United States, missing mortgage payments will trigger foreclosure. How that process plays out depends on the foreclosure law in your state. However, in every case of foreclosure, once you miss payments, you will receive notice from your lender. You should always respond to the lender and try to work out a plan to catch up on payments.
You will receive a "notice of default," which is the first step in the foreclosure process. This notice will outline how you violated the terms of your mortgage. Again, you still have time to work with your lender.
2. Court Date
In some states, you will be served papers summoning you to court. You can argue your case before the judge and present evidence that you do not violate your mortgage terms. The judge will decide if the foreclosure can move forward depending on your evidence.
In other states, the mortgage lender must file foreclosure paperwork with the court clerk. You will receive a notice outlining the timeframe of your property's sale. You then have up until the sale date to rectify the default.
3. The Sale
Your property will be auctioned off to the highest bidder on the sale date. Property foreclosure sales usually occur in a public location. In many cases, the lender is the highest bidder.
Once the property is auctioned off, foreclosure law allows the new owner to institute eviction proceedings. How long the eviction process takes largely depends on local laws and rules. If you occupy the property and you have gotten to this point in the process, it's essential that you make other living arrangements.
According to Yahoo Finance, foreclosures are on the rise. There were 100,000 foreclosures in the first quarter of 2023, a 10% increase from the previous year. There are ways you can save your property. A lawyer with experience in the foreclosure laws may be able to help. Call our team today to learn more.