Foreclosure is something that no homeowner wants to experience. However, should you find yourself faced with foreclosure, it is critical that you understand the process. In today’s blog post, we’re going to break down the basics. Please contact us immediately if you’d like to learn more, or if you’d like assistance with your specific situation.
A foreclosure is a lawsuit filed by a mortgage lender when it hasn’t been receiving payments on a home. Typically, a mortgage holder won’t initiate foreclosure proceeding until three or more payments have been missed.
After three missed payments, the lender generally sends a demand letter detailing how much must be paid and by what date. The lender will generally threaten a foreclosure suit if the deadline isn’t met – which means they will attempt to repossess the property so that they can sell it.
If the borrower hasn’t paid the specified sum by the deadline, the bank or mortgage company turns the matter over to their attorneys. The attorneys then file a complaint with the court and have the borrower served with the complaint and a summons. The borrower has 20 days to respond. If the borrower doesn’t respond within 20 days, the mortgage holder or lien holder automatically wins the case. If the borrower doesn’t show up at court, doesn’t file a response, or files a response that doesn’t contest the foreclosure, a final order of foreclosure can be entered.
At this point, many homeowners give up the fight – assuming that since they have been unable to make their payments, they have no chance to keep their home. But the truth is that there are a wide variety of options available. For example, if you are able to identify procedural mistakes committed by the lender during the loan process, the lender may be forced to agree to a loan modification. This process is extremely complex, and it’s critical that you have an experienced foreclosure defense attorney on your team.
If you’d like to learn more, please contact us today. And should you find yourself facing foreclosure, we want to help. Give us a call at (305) 227-4030 as soon as possible.
Law Office of Ray Garcia, P.A.
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