How long does the foreclosure process take?
So now the unfortunate has happened to you and you have no choice but to allow foreclosure proceedings to begin on your home. Now what? How long will this process take? When will you have to leave your house? We will examine the answers to those questions in our article.
It is important to note that each state; and perhaps even each county within a state, may have its own specific laws and procedures when it comes to foreclosures. You may want to check with your own local government regarding yours. However, we can give you a general idea of what you can expect to happen. First of all; If you haven’t gotten to this point yet (where your house is already in foreclosure), you may have some wiggle room. Most lenders don’t start the process until the homeowner is three to six months behind on their payments. If you are nearing the edge of this time period, there may still be other options for you besides foreclosure.
There are two basic types of foreclosure. The rate at which your lender pursues your foreclosure can have an effect on the speed of the overall process. The most prevalent of these two types is the foreclosure power of sale. In this method of foreclosure, the mortgage lender usually has the deed of trust to her house. When he defaults on his payments; he or she has the legal authority to sell her home. This is most often done at an auction. In this method of foreclosure, the proceedings move quite quickly, forcing you to have to leave your home much sooner.
The other type of foreclosure method is judicial foreclosure, which is the most frequently required method in many US states. This method requires a court to supervise your foreclosure proceedings. The process that is necessary to obtain a judicial foreclosure is similar to that of an average civil lawsuit. This type of foreclosure can take at least a year; sometimes even more, to complete. This can buy you some time; possibly allowing you to get the money to stop foreclosure proceedings altogether. However, it’s infinitely better not to get to this point in the first place if you can avoid it.
As a last resort, you may choose to file for bankruptcy, as this will immediately stop any foreclosure proceedings. Depending on the type of bankruptcy you choose; Chapter 13, for example, you would not be forced to leave your home and could even catch up on your missing mortgage payments. The bad part is that you now have the stigma often associated with bankruptcy on your hands. If you feel that you can bear that; bankruptcy may be a viable option for you. If you choose this method to stop foreclosure proceedings, you should probably consult your attorney first. He or she can best advise you on how to go forward with this.