5 Things You Need To Know About the Foreclosure Process

The foreclosure process can be a scary and emotional process. There are terms being thrown around that you do not understand and paperwork being mailed to you constantly that is just as confusing. The two most important things that you can do right now is get yourself educated and keep the lines of communication open with your bank. Here are five important things that you need to know about the foreclosure process in order to understand how to avoid it.

1. Know when your bank will start the foreclosure process. The best way to find this out is simply to call them and find out what their policies are. When the process will start depends entirely on your bank. Some will start foreclosure proceedings after 90 days of no payments. Some will take longer. Talk to your bank to know when that process will start for sure.

It also depends in large part on your willingness to work with the bank. If they know that you are trying to work with them, they may not even start foreclosure at all. Some banks will work with you to help you figure out the best solution for your specific situation. If you keep them informed of what is going on with you, you have a much better chance of working something out with them.

2. Know how long the foreclosure process will take with your bank. It varies from bank to bank and again, the best way to find out this information is by calling your bank and talking to someone in the foreclosure department. And again, it depends largely on your bank on how quickly this process will move. Some banks will get it done as quickly as 6 months and some will take longer.

3. Know what alternatives you have to foreclosure. There are always ways to avoid foreclosure. What your alternatives are will depend on your situation. This includes things like whether or not the changes to your financial situation are temporary or permanent, if you want to stay in the house or not, how much money you owe on the house and many other factors. Talking to your bank and a foreclosure attorney will help you figure out what your options are and what the best solution is for your situation.

4. Know who you need to be talking with at your bank. This may change during the foreclosure process. If you start working with your bank before your home goes into foreclosure, then you will probably start by dealing with the workout department. If your home goes into foreclosure, your file may get transferred to a foreclosure department. Keep in contact with your bank and make sure that you have the correct contact at all times. Faxing paperwork to the wrong person or repeatedly calling the wrong person ends up wasting your time. And time is one thing that is never on your side during the foreclosure process.

5. Know what the legal paperwork you are getting means. During the foreclosure process, you will paperwork from the mortgage company’s lawyers. If you can, getting a foreclosure attorney so that you understand what the paperwork means is a good idea. If you cannot get a foreclosure attorney, do some research yourself to understand what the paperwork you are getting means. Understanding the paperwork is vital to understanding where exactly you are at in the foreclosure process.