Worried about foreclosure? You’re not alone. Millions of Americans have gone through the foreclosure process, and many more are currently in danger of losing their homes. In this post, we’ll discuss the four phases of foreclosure and what to expect during each one.
Receive a Notice of a Default
The first phase of foreclosure is known as pre-foreclosure. During this phase, you’ll receive a notice from your lender informing you that you are behind on your mortgage payments and that foreclosure proceedings will begin if you don’t catch up on your payments. This notice is also known as a Notice of Default (NOD).
Once you receive a Notice of Default, you have three options: catch up on your payments, sell your home, or let the foreclosure proceed. If you catch up on your payments, the foreclosure process stops. If you sell your home, you can use the proceeds from the sale to pay off your mortgage and avoid foreclosure. If you do nothing, the foreclosure process will continue.
The Notice of Sale
If you don’t catch up on your payments or sell your home, the next phase of foreclosure is known as the Notice of Sale. During this phase, your lender will file a notice with the court system and publish a notice of the sale in the local newspaper. The Notice of Sale will list the date, time, and location of the foreclosure sale. You’ll typically have 20-60 days to catch up on your payments or sell your home before the foreclosure sale takes place.
The Foreclosure Sale
The foreclosure sale is the final stage of the foreclosure process. At the sale, your home will be auctioned off to the highest bidder. If you don’t have any equity in your home, the lender may own your home after the foreclosure sale since you can get evicted at this stage.
Want to Avoid Foreclosure?
If you are struggling to make your mortgage payments, there are options available to help you avoid foreclosure. You may be able to modify your loan, refinance your mortgage, or sell your home before the foreclosure sale takes place. And if you’re trying to sell your home in Texas quickly to avoid foreclosure, reach out at (210) 257-9788 to see how we can help.