If your payment is 30 days late or more, you are technically in default on your mortgage, and you will likely receive a notice from your lender. However, most lenders will not initiate foreclosure proceedings until you are 90 days behind on your payments.
When in default, homeowners have options. A repayment agreement can be reached with the lender. This often leaves the home in a foreclosure state but halts any further action.
If no satisfactory agreement has been made to repay the defaulted amount, the home will continue in the foreclosure process. Depending on the state in which you live, your lender may or may not have to file a lawsuit. If you live in a non-judicial foreclosure state, the lender can ask the trustee holding your mortgage to schedule an auction.
If a trustee schedules an auction of your home, it's called a trustee's sale. If your home is auctioned through the court process, it's done by the county sheriff's office and is called a sheriff's sale. In either case, your home is sold to the highest bidder, which is usually the lender. After this occurs, the new owner will likely work to evict you from the home.
There are options to avoid foreclosure. If you no longer can afford the house and want out, you can voluntarily surrender the property to your lender, who may even pay you to leave without a fight. You can also try to sell the home on your own, although if you can't sell it for what you owe, you will need lender approval to take less, called a short sale.By Christina Wheeler
If your payment is 30 days late or more, you are technically in default on your mortgage, and you will likely receive a notice from your lender. However, most lenders will not initiate foreclosure proceedings until you are 90 days behind on your payments.
When in default, homeowners have options. A repayment agreement can be reached with the lender. This often leaves the home in a foreclosure state but halts any further action.
If no satisfactory agreement has been made to repay the defaulted amount, the home will continue in the foreclosure process. Depending on the state in which you live, your lender may or may not have to file a lawsuit. If you live in a non-judicial foreclosure state, the lender can ask the trustee holding your mortgage to schedule an auction.
If a trustee schedules an auction of your home, it's called a trustee's sale. If your home is auctioned through the court process, it's done by the county sheriff's office and is called a sheriff's sale. In either case, your home is sold to the highest bidder, which is usually the lender. After this occurs, the new owner will likely work to evict you from the home.
There are options to avoid foreclosure. If you no longer can afford the house and want out, you can voluntarily surrender the property to your lender, who may even pay you to leave without a fight. You can also try to sell the home on your own, although if you can't sell it for what you owe, you will need lender approval to take less, called a short sale.By Christina Wheeler