| are going to cover here is a guide to the | | | | If you are behind on your mortgage and have |
| foreclosure process so you don’t lose your | | | | been issued a notice of default, the first thing you |
| home without a fight. If you have already | | | | need to do is call your lender to get status on |
| explored all of the options, just start over and | | | | your account. Yes, your lender calls you multiple |
| repeat the process. This is your home and if you | | | | times a day asking for you to make a payment |
| are determined to keep it then you need to | | | | but that’s not really the lender it’s |
| educate yourself. If you have tried for a home | | | | the collections department. You need to get in |
| loan modification and been rejected, try to find | | | | touch with your lender to let them know you |
| out the reason for the denial and submit for more | | | | want to keep your home and you need their help. |
| loan modifications correcting what was wrong. It | | | | They will ask if you can make a payment and |
| might take multiple calls to find out what went | | | | you should if you can. You don’t have to |
| wrong with your mortgage modification. | | | | make more than one monthly mortgage payment |
| Here are some steps to help. Research the | | | | even if they put pressure on you to. Just make |
| foreclosure laws in your state. Every state is | | | | one payment and this will help stall any |
| different as to how they handle foreclosures. | | | | foreclosure proceedings. If you don’t have |
| Know that no one will lose their home if they only | | | | the money to make a mortgage payment, then |
| miss one mortgage payment. There is a process | | | | there is nothing you can do about that but you |
| and procedure in place for states and banks are | | | | still need to call your lender. Do not ignore their |
| required to follow the legal guidelines in your state. | | | | calls if you are serious about a home loan |
| Let’s use California just as an example. If | | | | modification. |
| the lender follows the guidelines, this is what | | | | The bank will ask if you have applied for loan |
| happens
If a homeowner misses three | | | | modifications or a loan workout. If you |
| mortgage payments in California, a bank will issue | | | | haven’t applied, you need to submit an |
| a Notice of Default. This notice is public record. | | | | application to them immediately. Loan |
| After the notice of default is recorded, you have | | | | modifications take 4-6 months to get approved. |
| 90 days to reinstate your loan. After 90 days, | | | | You need to complete your application right away |
| you will be given notice that your home will be | | | | so you can get in line and get reviewed for a |
| sold at the courthouse in 21 days. This is the | | | | home loan modification. Again, even if you are |
| fastest your home could be foreclosed so | | | | behind or in foreclosure, you can apply for a |
| don’t panic. | | | | home loan modification and a lender will postpone |
| If a homeowner in any state is in line for a home | | | | any sale date. |
| loan modification and you have a sale date set on | | | | You have many more options in foreclosure than |
| your home, you need to call your bank right | | | | you realize. If you want to keep your home, you |
| away and ask for the sale date to be postponed. | | | | can do it but you have to be aggressive and |
| They will agree to continue to postpone your sale | | | | work with your lender or whoever holds the |
| date until they make a decision on your mortgage | | | | mortgage. Don’t ignore your lenders calls. |
| application. The application does not stop the bank | | | | Some homeowners in trouble tend to worry a lot |
| from accelerating the foreclosure but they will not | | | | but to do very little. Don’t let this describe |
| take your home if they are still reviewing your | | | | you. You need to be a person of action. |
| application for a modification. | | | | |