Basics of Foreclosures

  Not knowing about something can make it frightening but knowing the details can help calm fears and make you wiser about other issues. Foreclosure seems to be at the top of the real estate list these days and not just in Bozeman MT real estate. Here are the basics you need know.

A forclosure happens when a when a lender exercises its lien against a borrower's home in order to sell the house to pay off the mortgage loan. This can only happen if the borrower has not made mortgage payments for an extended period of time and has ignored notices that the payments are behind. This doesn't happen overnight and if the homeowner doesn't call the lender and set up some help the following will take place. [Visit our Mercer Island real estate connection for more help for sellers]

Step 1 - Notice of default is recorded by the bank

 This will happen is the homeowner misses one or more payments. Some lenders let it go through a couple missed payments but more lenders are becoming stricter and notifying the homeowner before it gets too late.

Step 2 - Opportunity to reinstate the loan

  This allows the homeowner an opportunity to reinstate the loan up to 5 days before an auction to sell the home. This can be done by paying any late payments plus the late fees and whatever penalties are assessed. At this point the foreclosure is stopped.

Step 3 - Date of foreclosure is set by the bank

  If you can't pay back the loan the bank sets the foreclosure date approximately 90 days after the default notice. You can still live in the home until this date which may give you time to gather the back payments and still save your home.

Step 4 - Notice of trustee sale is prepared, published and posted

  The bank begins to prepare the notice of trustee sale. The bank will publish it in the local newspaper and mail you a copy. This also is posted on the outside of the home. There is still time to make the payments current.

Step 5 - The house is sold at a foreclosure auction

  Now is the time of no return for the payments.  If you are still living in the house and it is sold to a buyer at the auction, the winning bidder can have you evicted by authorities within 24 hours. If the house doesn't sell, the bank will show the house just like you would if you were selling the Montana real estate yourself. The bank may also have you evicted within 24 hours, or the bank may decide to let you stay until the house sells. [Visit our Las Vegas real estate contact for more on short sales and foreclosures.]

  If you are facing forelcosure and just can't seem to make the next payment, don't wait any longer. Contact me today on how we can potentially save your home and your finances.  Although the process can be stopped anytime up to five days before the sale, the earlier you intervene, the easier it is to stop.