Know more about foreclosure process

When you fail to pay the mortgages for your house, you will be slapped with a foreclosure notice. Foreclosure is a long legal process.  A mortgage lender seeks a foreclosure as a last recourse to recover his money. 

A foreclosure process starts with pre-foreclosure procedures. When a person misses out on the first couple of payments he is served a notice. If the owner pays no heed to it, a second late payment notice is served. If even this is ignored a final request is made. If the last request too elicits no response, then the mortgage lender is entitled to seek for the payment in full. A standard clause, called the acceleration clause, in your mortgage agreement entitles the lender to seek the payment in full along with late payments and other applicable penalties.  Once this clause is evoked the process of foreclosure formally begins.

Next, the lender sends a foreclosure letter certified by the sheriff or legal officer to the house owner. This is followed by a publication of a newspaper notice about the foreclosure. Soon, a court date is set. All parties involved in the case are summoned for a hearing. Once the court is convinced, it will pass the foreclosure order. Armed with this order the lender publishes the note of foreclosure along with the date of auction.

The auction takes place under the supervision of a legal officer. Once the auction is closed, new purchase contracts are issued.

Legal matters make a foreclosure process a lengthy and time consuming affair.  However, even when the ball is in the court, matters between the lender and the owner can be settled amicably.