Traditional Mortgage Foreclosure
In a mortgage foreclosure, when the owner falls 90 days or more behind on payments, the lender turns the file over to the trustee. The trustee then files a notice of default with the courts to begin the process of foreclosing on the property with the intention to sell the property and recover the debt owed.
Foreclosures are either judicial or non-judicial depending on what state you live in, but there are some cases where a judicial foreclosure is filed in a non-judicial foreclosure state.
In a non-judicial foreclosure, the trustee only needs to file documents with the court to foreclose on the property. You will not be served, but the documents are posted on the property. The timelines vary depending on the lender and trustee. They could file the notice of default when you are 90 days late and file the Notice of Trustee Sale a couple weeks later…. or it could take them months to file your notice of default and 2 month after that to file your Notice of Trustee Sale. The law is that the auction date cannot be less than 120 days from the date the Notice of Trustee Sale is filed. The fastest a lender could foreclose on a non-judicial foreclosure is around 8 months from the first missed payment.
In a judicial foreclosure, the home owner will be served court documents and need to respond to the court before the deadline stated in the order. Failure to do so will result in the property being sold at auction. If the owner does respond and attend all court dates, the process could take years for the lender to foreclose and sell the property at auction.
In both of these scenarios, it is better to know all your options and take action to find a solution quickly.
If you are wanting to keep the property, lenders and trustees do appreciate your cooperation and communication, thus resulting in a more favorable outcome.
They have to spend money, time and resources on your foreclosure. They want you to either work out an option to keep the property or sell it, so they can get the negative asset off their books and recoup their investment. Plus your payoff amount is going up daily.
Call or Fill out our contact form on the Contact Us page with the following information:
Property address
Details about your situation
Auction date (if applicable)
Your goals regarding the property
The best time to reach you
We will review all your options, explain any fees involved if you decide to sell or buy the property from the estate, and provide a free market analysis. Commissions and closing costs are paid at closing. If the family wishes to buy the property, we offer this service at a reduced commission and handle everything from contracts through closing.
Real estate attorneys can draft the documents if you chose to sell the property without an agent. They only draft contracts and do not coordinate the full transaction or negotiate with buyers on your behalf. Research the costs and services of all options before making a decision
If probate is necessary, we work with probate attorneys who are paid at closing.
If you prefer a quick sale, we also work with investors nationwide who will make offers to buy the property as-is.