Foreclosure Notice

A lender starts a foreclosure procedure by issuing a foreclosure notice also known as foreclosure notice of default. If it has been around 90 days or more since you last paid your lender, then probabilities are that the lender might issue a foreclosure notice in your name. Most of the lenders try to speak to you verbally or issue an 'intent to foreclose' notice, so that the initiation of the foreclosure process is stopped.

According to the laws of the state, a foreclosure notice cannot be sent to you without displaying it publicly. It can either be published in the local newspapers or can be hung at a public place. Nowadays, may lenders are putting the foreclosure notice up on the internet. There are several other financial consequences of foreclosure as well. To avoid foreclosure, you should try to make your payments on time, however this is easier said than done as everyone goes through financial turmoil. So, if you have missed one or two payments, try contacting your lender and see if he can help you. Another way to do is to find foreclosure help but be a bit careful as many unscrupulous people target people who are desperate and can do anything to stop foreclosure. The agreement that you sign while taking the property on loan specifies the time-frame after which foreclosure procedure will be started. Most of the states allow the borrower to stay in the auctioned home for six months to a year (varies with state) after the house has been auctioned. This period is called redemption period. During the redemption period, a borrower can buy back his house by paying the highest bidder at the auction the price at which he bought the house.

Foreclosure Notice : A Sample

Date Name Address Mr. Smith, This notice is regarding the non-payment of dues of your mortgage. You have failed to make any payments in the last three months. You must make the payments on or before___________(date) by sending the amount mentioned below to__________(company name) in the form of a money order or certified check. The total amount due as of [date] is $___________. To bring your account up-to-date, it is also notified to you that any late charges would also have to be included in the last 30 days payment. Acceptance of less than the total amount due would not waive off these late charges or other payments, if any. Acceptance of less than the total amount due also does not deter our right to sell your property in case you fail to pay up the remaining amount later. If you are not able to make the payments in the next 30 days, then you will have to pay the total payable amount under the terms and conditions of our agreement. If you fail to pay, then____________(name of the company) will start legal action to foreclose on the mortgage, which will result in the property being put up for sale. You have the right to settle the loan even after the commencement of legal procedures. In accordance with your rights, you can also dispute our claim for foreclosure if you feel that you do not owe us. We assure you of all possible help and support to bring your account into good condition. We request you to contact us at_____________ (telephone number) who will assist you in solving your current difficulty. Sincerely, Signature

If you do not respond to the foreclosure notice, then the lender is legally entitled to start the foreclosure process by filing the 'notice of sale'. Even then, the foreclosure process can be stopped or postponed. The most important thing to remember is that the lender is never keen on selling your property. The reason for that being that the lender loses on the interest that you would have paid and reselling a property always depreciates its cost. So, be assured that if you really want to save your property, you will find help. But, it does not mean that one should take advantage of this fact, because if you leave the lender with no choice, he will definitely have to sell your property. You must ensure that you are cooperating fully so that your property is saved from being foreclosed.