A foreclosure notice can be the first notification from a loan provider to a homeowner indicating the initiation of the foreclosure process. Many foreclosure notices were sent out across the United States after the burst of the housing bubble.
Foreclosure rates subsequently skyrocketed and some homeowners were left wondering how to respond. For homeowners to have the best opportunity at preventing a foreclosure, it can be wise to learn as much about the foreclosure process as possible and how foreclosure notices work in the process.
What is a Foreclosure Notice?
A foreclosure notice typically represents the first stage in the foreclosure process whereby a mortgage lender communicates the intent to foreclose on a homeowner’s home. To expand further, a foreclosure notice may be a number of documents that may be filed, presented, or posted notifying the homeowner of the mortgage lender’s commencement of foreclosure proceedings.
Loan servicers commonly start the foreclosure process after three or more delinquent mortgage payments. The foreclosure process may begin officially after the lender utilizes a trustee to file a notice of default with the local clerk of the court.
Why Did I Receive a Foreclosure Notice?
A foreclosure notice may be sent out after a homeowner goes delinquent on one or more mortgage payments. After typically three missed mortgage payments, and a refusal to recognize the loan servicer’s efforts to resolve the missed mortgage payments, a notice of default can be sent.
Often times, when a loan servicer’s efforts to contact a homeowner are disregarded, the mortgage lender may increase their efforts until subsequently following up with a foreclosure notice. It can be a smart idea to respond to a lender’s communication efforts as soon as possible. Ignoring their attempts at collection may limit their willingness to find a foreclosure resolution prior to initiating the foreclosure process.
How Much Time Do I Have After a Foreclosure Notice?
After a foreclosure notice has been received, the length of time a homeowner may spend in his or her home before it is sold at a foreclosure auction can vary. There are a number of factors that can affect the duration of the foreclosure process. For example, a chapter 13 bankruptcy may halt foreclosure proceedings indefinitely while the automatic stay is in effect.
On the other hand, if the foreclosure process is left to run its course, it may take several months to complete the foreclosure process. It depends greatly upon which state a homeowner resides in and if it is a judicial or nonjudicial state. The foreclosure process can vary from state to state and some states are known to process foreclosures more quickly than others.