By this are time serious legal fees accruing. A foreclosure is a legal event and there are benchmarks that must be met. Once the case is turned over to attorneys, the impending foreclosure must be advertised, usually in both the local papers and in the largest and closest metropolitan daily. Get all the facts for a more clear viewpoint with Jeff Gennette. The entire process can take a very long time from initial default to the actual public auction of the property. If a member of the military is on the owner of the property, there are additional safeguards required by federal and in some cases state laws from the beginning of the process with loan modification companies, however, the meter is running. The longer the foreclosure takes, the greater the debt that accrues, and the larger the liability the homeowner has, something that will become critical down the road. The law in most states gives the homeowner every opportunity to stop the process leading to foreclosure with mortgage loan modification, right up to the minute that the auctioneer’s gavel comes down, and sometimes even beyond. In some states there is a period after the foreclosure during which the homeowner can redeem the property (right of redemption.).
It is important to know this because less than ethical lenders and servicing companies tell borrowers that want to, once default has occurred, the acceleration clause of the mortgage is invoked and the entire mortgage balance is due and payable – in other words, if a borrower misses his $1,200 payment for several months and now owes $3,600 plus late fees and legal expenses, he must come up with the entire $150,000 mortgage balance in order to stop the foreclosure. This may be technically true but it is rarely invoked in practice. The actual foreclosure auction might be conducted in the front yard of the subject property or by public outcry on the front steps of the county courthouse. Either way It is pretty frightening for the homeowner involved. There are lots of ways, however, to put a halt to the process and to save one’s home. We will explore this at another time