How Serious Is The Foreclosure Issue?

Foreclosure on your home is an extremely serious issue. Unfortunately, many people do not realize the extent or the severity of this financial nightmare until it is too late. Foreclosure on your home will result in the loss of your rights as the homeowner and also presents many legal challenges.

The foreclosure process on the home begins when a homeowner has neglected to make their required monthly mortgage payments. A homeowner , in most cases, will be delinquent on their mortgage payment anywhere from 90 to 120 days. In today's economic climate, many homeowners are finding it difficult to make their mortgage payment and as a result are facing foreclosure.

Once the homeowner moves beyond 90 or 120 days without curing the delinquency, the mortgage lender will initiate action to legally foreclose on the home. The homeowner will be served with a foreclosure complaint by the court. Once you have been served with the foreclosure complaint your next steps are vital in trying to save your home from foreclosure.

Service of the complaint is often the point at which many homeowners choose to ignore their mortgage lender and the foreclosure action. In most cases, homeowners are unaware that once served with a foreclosure complaint they must respond in order to preserve their legal rights and to enable them to take steps to try to save their home from foreclosure or take the steps to sell it.

In most states, the homeowner has a specified period of time by law to respond to the foreclosure complaint of the mortgage lender. It is highly recommended that you seek legal counsel to understand your legal rights as the homeowner and to explore your alternatives in resolving the foreclosure action.

Lenders, even during the foreclosure process, can work with the homeowner to help them save their home. Your lender will require you to submit information to possibly help you modify your mortgage loan. A loan modification may help you to cure your delinquent payments and may even lower your payments or rate over the life of your loan. There are also government programs that you may qualify for if you are experiencing financial hardship and facing foreclosure.

If you are unable to modify your mortgage loan or qualify for assistance then you have other options to help you avoid foreclosure. You may be faced with the fact that you will need to sell your home. In this case a short sale may be an option. Check with a real estate professional who has received advanced education and certification, like the Certified Distressed Property Expert designation, for your options.

Again, it is vital that you seek legal counsel and keep the lines of communication open with your mortgage lender. Although the lender has begun the process of foreclosure they can still work with you to try and find an alternative if one exists.

If you ignore the foreclosure of your property or are ignorant of the law and your rights you will lose your home. It is crucial to understand the serious nature of foreclosure and take action to save your home and your legal rights.

Don't hesitate to call our office for more information, and referrals to the many professionals who can help.