Frequently Asked Questions

What is the foreclosure process?

Non-judicial Foreclosure: When you are 90 days or more late on your payments, the lender sends the file to the trustee, an attorney, that files the Notice of Default with the court. 30-45 days later, the trustee files the Notice of Trustee Sale and sets the auction date, which is 120 days from the day the notice of sale is filed. The notice will be posted on the property. They do not have to serve you. Stopping them from doing the posting is not going to stop the process from moving forward.

Judicial Foreclosure: When you are 90 days or more late on your payments, the lender sends the file to the trustee, who files a complaint with the court. You are served a summons, which you need to respond to by contesting the foreclosure, negotiating a settlement or making a repayment plan. If no resolution is reached, the court will order the Notice of Sale with the date of the auction. If the proceeds of the sale do not cover the debt, the lender may seek a deficiency judgment and go after other assets to cover the remaining debt.

Is someone from the mortgage company going to come to my house?

The only people will be sent to the property without making arrangements with you is to check if you still live there, who will be

and the person sent by the court post the Notice of Trustee Sale.

Can I sell my house to an investor on a short sale and buy it back later?

No. This practice is known as profit skimming, and it is illegal. Unfortunately, some dishonest investors have used this approach as a scam; offering to buy your home with the promise of renting it back to you until your credit improves and then selling it back to you. But in many cases, after the sale closes, the original owner is quickly evicted. It’s an upsetting situation, and we always encourage people to be cautious and to avoid these kinds of situations

Can I sell my house to a family member on a short sale?

No, short sales have to be arm’s length transactions, which means all parties must act independently without any personal relationships influencing the deal.

My auction date is only a couple weeks away. Is it too late?

Not necessarily, but the chances of a favorable outcome can be lower. Most options take time to be put in place so reach out to a foreclosure specialist promptly. It will not only help you with your lender but it will also increase your chances of saving your home.

Is the mortgage company going to change my locks before the auction date?

Only if the property is determined to be vacant. In most cases, your lender actually prefers that you stay in the home so you can work towards a solution. They will send someone to check on the property every couple of weeks to ensure it’s still occupied. If it’s found to be vacant, they’ll secure the home which may include changing the locks. In these situations, the property preservation company will post their contact information on-site. For questions on how to navigate this situation, please reach out to us.

Can I sell my house if I’m in foreclosure?

Yes. In every type of foreclosure, you have the option to sell your house.

Should I have someone represent me if I sell my house?

Yes. You should always have a real estate agent negotiate on your behalf or an attorney, of your choosing review the contract before you sign anything. We can refer you to an a real estate agent that will do a free consultation, the fee is negotiable and they get paid at closing. Send a request on the Contact Us page and we will refer you to 3 reputable real estate agents in your area

Does the bank take my house?

If no action is taken, your home may go to auction, so the lender can recover what they’re owed. Any leftover funds will be held in an unclaimed property account, which you can still claim later.

Should I move out of the house if I am in foreclosure?

No, it’s important to keep your home occupied and maintained. When houses are left abandoned, they become vulnerable to squatters, fire, vandalism, and mold from poor ventilation. Even something as simple as going without heat can lead to floor warping which can cause further damage. Your lender (and even your neighbors) will prefer that you stay in the home and take care of it. Additionally, if your property is part of an HOA, unpaid dues can lead to liens or even foreclosure, so staying on top of maintenance and payments is crucial.

Can I refinance my loan if I am in foreclosure?

No. You cannot refinance or access your equity once your lender places you in preforeclosure status. You have other options and they are all outlined in this website.

How long does a foreclosure take?

In a non-judicial state, the foreclosure process can be as fast as nine months from the time you miss your first payment.

In a judicial state, it can take much longer—sometimes years—depending on how long the process goes through the courts and how busy the court system is. Keep in mind that the amount you owe increases each month, and each missed payment will be reported on your credit. If you have equity in your home, I would recommend considering a sale to cash out that equity before things progress further.

What’s the difference between a judicial and non-judicial state?

The difference is whether or not your state goes through a court process. If your state handles foreclosures within the court system, then you are in a judicial state. If your state bypasses the court proceedings, then you are in a non-judicial state. This is mainly determined by the location of your property so please keep this in mind if you live in a different state then the at-risk property.

Can I save my house if I don’t have income?

No, all of the programs specifically created for COVID-19 relief have ended. However, you can still search for local grant programs or assistance in your area. Some communities and nonprofits may offer support based on your current situation. Please keep in mind that these are often short-term solutions and further action may be needed.

Is there a guarantee any of these solutions will work?

The honest truth is that there are no guarantees.  Unless you have the funds to pay your arrears, all outcomes are subject to lender or court approval.

Am I going to be responsible for the debt my lender forgives in a short sale?

Almost always, no. There is an exception in tax law, so you don't have to pay taxes on the forgiven debt. Consult our CPA with any questions and have them file your taxes in the year you complete your short sale.

Should I trust someone that calls me and offers to do my forbearance or loan modification for a fee?

No. You do a forbearance or loan modification directly through your lender. They will never charge you a fee. A certified HUD Housing Counselor can also coordinate this for you. They may charge a small fee, but research everyone that calls you before giving them any personal information. Foreclosure and property records are public and anyone can get this information. Attorneys are the only ones that can legally charge you for this service.

Can I buy again if my property gets foreclosed?

Yes. The sit out period is three years after the acquisition date. So, if your property sells at auction, you can qualify for a new loan in three years. If your property doesn’t sell at auction, it will go back to the lender to be processed and sold. The day the property records into the new owner’s name, is the acquisition date, and the day your three year sit out period starts. This could be 60 days or 5 years. This is why taking control of your foreclosure is so important.

Do I still owe the money if my house gets foreclosed?

Yes. If the entire debt isn’t paid from the proceeds of the sale, the lender can come after you for the deficiency.