Foreclosure can be a difficult time filled with lots of uncertainty. If you’re going through foreclosure, you might be wondering what happens during the process. There are usually several steps that a lender has to follow during the foreclosure process, such as serving a summons and a default notice, before getting a court order. Once these steps are being taken, the foreclosure process has begun. However, foreclosure is generally reversible right up until the property has been sold.
Read on below to find out everything you’ll need to know about what happens during foreclosure.
When you take out a home loan, your house is held by your lender as security. This means that your lender can repossess and sell the house if you fail to make repayments according to your loan contract. Foreclosure refers to the process when a lender takes possession of a property and sells after the homeowner fails to make their mortgage repayments.
Once you have been sent a default notice and then sent a summons if you have not filed a defence, the next step in the foreclosure process is being served with a notice to vacate or an eviction notice.
Generally, you will usually have two weeks to leave your home once the eviction notice has been served. You will not be able to access your home once you have vacated, as the locks will usually have been changed by your lender. If you happen to need access once you have vacated, your lender would have to meet you to let you in as you will not have access on your own once you have vacated, or been evicted due to notice being served.
In some cases, foreclosed properties are either sold directly by the lender or at auction. Generally speaking, if your lender forecloses your home they may not be able to chase you for any money owing on your mortgage after the sale.
Generally, a lender will hold on to a foreclosed property until a time when it is sold, and they can recoup any outstanding funds. This could take anywhere from a few months to much longer.
It may be hard to get your home back in your possession after it’s been foreclosed on. Since foreclosure is the process of selling your home to cover debts, it may be unlikely that you would be in a position to have extra funding to buy back your house once your lender has put it on the market.
However, you may be able to repurchase your home back at a later date, once your debts have been repaid and if you can get approved for another mortgage.
While these steps may seem final, they may not need to happen. In some cases, foreclosure is reversible right up until the property has been sold. J Daniels & Associates may be able to help stop a foreclosure from happening by negotiating with your lender on your behalf or exploring other avenues of help.
J Daniels & Associates has more than 40 years’ experience and has helped 1,000’s of people successfully.
We advocate on our clients’ behalf with banks and creditors in order to stop home repossession, as well as helping to stop those in bankruptcy situations from being harassed by creditors. You shouldn’t have to live in constant fear, and that’s where we can help.
We aim to provide support services to those who do not know where to look, or who are confused about where to turn during the bankruptcy process. Our helpful advocates can assist you when you need it the most. We are able to give you confidential help, expert debt guidance and help you to find a personalised solution.
We don’t have any hidden fees, so you won’t have to worry about any nasty surprises. In addition to helping you to improve your financial situation, we can assist you in finding a solution to your mortgage issues. If you’re in need of help and support, give us a call today for your free consultation.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
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