Your home is likely one of your most financially and emotionally important purchases that you have ever made. Not surprisingly, the threat of losing the home to foreclosure can be a source of immense fear and panic. However, it is important to understand that there are rights afforded to homeowners with mortgages, and taking the time to familiarize yourself with foreclosure could greatly reduce the confusion or stress that you feel.
Will Your Home Be Foreclosed If You Are Late With Paying Your Mortgage?
Ensuring that the monthly mortgage payments are made on time is something that should be a top priority for every homeowner. However, it is a reality that your financial situation can fluctuate over the many years that you live in the house, and this can result in you falling behind on your mortgage payments. It is important to realize that the bank will be unable to foreclose on your property immediately after you are late on repayment. Typically, you will have to fall at least a couple of payments behind, and you can easily review this information in your mortgage contract.
Is It Possible To Reverse Or Stop A Foreclosure Before It Is Finalized?
Once you have reached the point where the bank has started the foreclosure process, there may be options for fighting the foreclosure or convincing the bank to cancel it. Depending on your history with the mortgage and the current housing market, the bank may willing to stop these proceedings if the account is brought to date and the legal fees paid. In other instances, the bank may be unwilling to cancel these proceedings. When this is the case, you should immediately retain an attorney that offers foreclosure defense. There are many rules and regulations that must be precisely followed for a foreclosure to be legally valid, and your attorney will be able to review the actions of the bank to help you determine your best course for fighting it. In extreme situations, filing bankruptcy may be a way to force the lender to negotiate friendlier repayment terms, but only your attorney will be able to help you determine whether this is a good strategy.
Will A Failed Foreclosure Result In The Debt Being Cancelled?
In instances where the attorney was able to successfully contest the foreclosure proceedings, some people may assume that the entire mortgage will be forgiven or thrown out by the courts. Yet, this is not what should be expected as the mortgage is secured by the house. Rather than expecting this, you should simply assume that you will need to resume the normal monthly mortgage payments.