Foreclosures are still in the news, an the Cedar City Real Estate Market is no stranger to epidemic of foreclosures that are making the news. To be honest we do prospect the list that we get from the Title Company that shows who has received a Notice of Default from their mortgage company. There are a lot of people still facing this frightening experience.
This started out to be a blog on the entire process, now having just written about the steps of the foreclosure process, I realize that this is going to have to be at least 2 if not 3 blogs. This is only a quick overview of the process, it is pretty general however each situation is different.
One of the important things to understand is the typical time line of a foreclosure and the departments of the mortgage company that you will be dealing with in the different. If you’re 30 to 60 late on your mortgage payments, you will be dealing with the Collections Department or the Loan Servicing Department.
Once you are 60 to 90 days late on your mortgage, your account will be taken over by the Loss Mitigation Department. When you arrive at 90 days late you will be sent a Notice of Default from the Mortgage Company.
Around the time that the Notice of Default is sent, your account will most likely be turned over to a 3rd party Trustee, usually an attorney. The Notice of Default will tell you a sale date for your home. This is the date of the Foreclosure. That sale date is usually 90 days from the Notice of Default date.
It is important that you know your options from the outset of being unable to make your mortgage payments. We see far too many people walk away from their homes once they receive the Notice of Default, they don’t even attempt to work out a solution. They are opting to just walk away.
It is important that you muster the strength to contact your mortgage company as soon as you possibly can, there are options available to you. Most Mortgage companies will discuss them with you. You need to understand your options so that you can decide from a place of knowledge, not a place of panic. I will discuss those some options in succeeding posts.
This is also a good time to contact your local realtor, they can help walk you through some of the solutions and point you in the direction of places to seek more advice and knowledge. This may also be a good time to contact an Attorney or another counselor to assist you in this process. Here in Cedar City, we also have the Cedar City Housing Authority, which helps homeowners in distress. This is not a pleasant experience, therefore it is more manageable if you approach it with knowledge.