Hello, welcome to my blog.
With years of experience in real estate industry, I started this blog to share my ideas with all of you. My posts are for buyers, sellers and real estate professionals.
I am member of powerhouse team of Remax Specialists. With a unique love for the area and people I serve, I presently
reside in Upper Marlboro, MD, with my beautiful wife who I married 8 years ago, and my four wonderful sons.
You can also find my posts here:
http://heywardhomes.blogspot.com/
Or visit my homepage:
http://heywardhomes.com/
If you are from MD or DC or you are planning to move there, I can give you free consultation - just send me an email to charles.heyward@gmail.com
All the best,
Charles
With years of experience in real estate industry, I started this blog to share my ideas with all of you. My posts are for buyers, sellers and real estate professionals.
I am member of powerhouse team of Remax Specialists. With a unique love for the area and people I serve, I presently
reside in Upper Marlboro, MD, with my beautiful wife who I married 8 years ago, and my four wonderful sons.
You can also find my posts here:
http://heywardhomes.blogspot.com/
Or visit my homepage:
http://heywardhomes.com/
If you are from MD or DC or you are planning to move there, I can give you free consultation - just send me an email to charles.heyward@gmail.com
All the best,
Charles
What is timeframe for foreclosure risk? Start to end
Posted 12-01-2009 at 05:50 AM by CharlesHeyward
I have come across a number of cases where the homeowners who have missed the monthly mortgage payments, judged the timeline for foreclosure of their house either too soon or too late. Both situations can have detrimental consequences. However, every state has different regulations and the timeframe for foreclosure differs accordingly. Let me guide you through the progression of missed payment proceedings and period for a foreclosure.
Let’s take it from the first month of the missed payment-The mortgage lender will mail or call you up and bring the missed payment to your notice. There is not much explaining to be done but it is better if you tell them the true reason for missed payments.
Second month, the lender will hire a debt collection agency to contact you over the phone and know your situation. At this stage, it is a good idea to take all the phone calls and explain everything to the agency and that you are making efforts to change it. Try and avoid the third consecutive missed payment, and make least one payment.
A third consecutive month of missed payment will bring with it some amount of strong resentment from the lender. The lender will send you a ‘Demand letter’ or a ‘Notice to accelerate’, suggesting that you pay the due amount on the suggested date. If you fail to make the payment on the due date, the lender can start foreclosure proceedings. You can still work with the lender to figure out a way, but in most cases, the lenders do not take a lesser amount than the total payment due.
In the fourth month, if you have not worked around your situation with the lender, the lender’s attorneys will contact you. The attorney’s costs will be added to the total amount you owe.
If you still do not work with the lender and find a way out, the foreclosure proceeding will begin. The attorney will schedule a date for the sale of your house.. The foreclosure notification will be sent to you through mail. The sale date isn’t the actual date when you move out but you are nearing the dead end. In most cases the time difference between a demand letter and the actual sale can be in the range of 2 to 3 months, and it depends on the state’s policy. The time after the sale date is known as the redemption period and the actual date of leaving the house will be sent to you along with the demand letter.
My advice when facing foreclosure risk is to stay calm and talk with your lender as much as possible. Another great idea would be to meet a housing counselor during the first four months of missed payments. Foreclosure risk may be a nightmare but can be avoided. I will follow up on this in my next blog.
Let’s take it from the first month of the missed payment-The mortgage lender will mail or call you up and bring the missed payment to your notice. There is not much explaining to be done but it is better if you tell them the true reason for missed payments.
Second month, the lender will hire a debt collection agency to contact you over the phone and know your situation. At this stage, it is a good idea to take all the phone calls and explain everything to the agency and that you are making efforts to change it. Try and avoid the third consecutive missed payment, and make least one payment.
A third consecutive month of missed payment will bring with it some amount of strong resentment from the lender. The lender will send you a ‘Demand letter’ or a ‘Notice to accelerate’, suggesting that you pay the due amount on the suggested date. If you fail to make the payment on the due date, the lender can start foreclosure proceedings. You can still work with the lender to figure out a way, but in most cases, the lenders do not take a lesser amount than the total payment due.
In the fourth month, if you have not worked around your situation with the lender, the lender’s attorneys will contact you. The attorney’s costs will be added to the total amount you owe.
If you still do not work with the lender and find a way out, the foreclosure proceeding will begin. The attorney will schedule a date for the sale of your house.. The foreclosure notification will be sent to you through mail. The sale date isn’t the actual date when you move out but you are nearing the dead end. In most cases the time difference between a demand letter and the actual sale can be in the range of 2 to 3 months, and it depends on the state’s policy. The time after the sale date is known as the redemption period and the actual date of leaving the house will be sent to you along with the demand letter.
My advice when facing foreclosure risk is to stay calm and talk with your lender as much as possible. Another great idea would be to meet a housing counselor during the first four months of missed payments. Foreclosure risk may be a nightmare but can be avoided. I will follow up on this in my next blog.
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