What You Need To Know About Foreclosures - As A Homeowner 

Foreclosure might just be a homeowner's worst fear. You work so hard to buy a house, and then you put your heart into turning it into a home for your family. So, to face the prospect of losing your home through foreclosure is hard to accept. This site has been developed to provide free foreclosure information so you can at least be better prepared.

If you feel that you may be facing a possible foreclosure, you need to know what may happen, what your rights are, and how to stop a foreclosure. Here's what you can be on the lookout for.

Before foreclosure occurs, your mortgage holder, must, by law, notify you. In fact, you should receive multiple telephone calls and written notices. The possibility of foreclosure should not be a surprise. If matters escalate and your home is foreclosed, you will receive an eviction notice at some point.

The worst thing you can do when you receive a foreclosure notice or warning phone calls is to ignore these notices and calls. It is in your best interest to contact the lender and setup an appointment as soon as possible. Insist on meeting with someone who has the authority to make decisions, like the chief loans officer or the bank president. Do not do this over the phone.

It may surprise you to learn that mortgage holders want to help you find out how to avoid foreclosure almost as much as you do. The reason for this is because lenders usually lose money when they sell a foreclosed property.

When you have your meeting, be prepared to provide detailed information about your financial situation. Your lender will want to know if your situation is temporary. For instance, are you off work because of an injury? Are you laid-off and if so, when will you return to work? If your job is terminated, are you seeking employment? Where have you applied for a job?

The more information you can provide, the better, because it shows the mortgage holder that it may be worthwhile to try to work out the situation with you. Your lender wants to establish whether or not there is a realistic possibility that you may be able to return your mortgage to good standing. If they feel this is possible they may, for instance, be willing to accept smaller payments until you get back on your feet.

If it does come down to the actual foreclosure proceedings, be aware that the process varies from state to state. This is important to know especially if you are planning to get professional help with foreclosure from a lawyer or housing counselor. Be sure to choose a professional who is familiar with the foreclosure laws in your state.

In New York, for instance, by law, judicial as well as non-judicial foreclosures are permitted. Judicial foreclosures are where lenders must file an official complaint against the borrower. Once filed, the complaint has to be approved by the local court. The borrower is then given one more chance to pay the overdue amount. If he or she doesn't, the property can then be sold.

In a non-judicial foreclosure, a specific clause must have been written into the mortgage agreement by the lender. This clause would stipulate that the borrower authorizes the sale of the property when payment is delinquent.

Non-judicial foreclosures are rarely used and are even prohibited in some states. This is only one reason why it is so important to know the foreclosure laws in your state.

Once the foreclosure process has begun, you will need to start looking for another place to live. You legally do not have to move until you are served with an eviction notice by the lender or the new property owner. But realistically, you probably won't want to wait until then to make new arrangements. You will need time to locate a new place to live and chances are it will be a rental.

When you rent, you will most likely be required to pay a security deposit, as well as the first and possibly the last month's rent in advance. Give yourself time to come up with the needed funds so you are not under any additional stress, when the time comes to move out of your home.

The bottom line is that, even if you have to go through a foreclosure, you need to be aware of your rights, as well as foreclosure laws in your state. The free foreclosure information provided on this site is intended to help you to better understand what you need to know, as a homeowner dealing with foreclosure.

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If you have other questions, you may want to consult the foreclosure FAQ section of this site.

If you are a homebuyer, there are also things you need to be aware of, in case the home you are interested in is in foreclosure. For free foreclosure information, check out this section about buying foreclosure properties.