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FENDING_OFF_FORECLOSURE

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					     FENDING OFF

    FORECLOSURE
A Simple Guide to Keeping Your Home
                          TABLE OF CONTENTS
Introduction:
What Today’s Mortgage Crisis Is All About

Chapter One:
What Foreclosure Is All About

Chapter Two:
What to Do When Facing Foreclosure

Chapter Three:
Special Circumstances to Consider

Chapter Four:
Avoiding Foreclosure Scams

Chapter Five:
After Foreclosure … What It Really Means to Your Financial Future

Chapter Six:
Raising Immediate Cash to Fend Off Foreclosure

Chapter Seven:
Foreclosure Loopholes to Be Aware Of

Chapter Eight:
Common Foreclosure Myths

Chapter Nine:
Frequently Asked Questions (FAQ’s)

Chapter Ten:
Where to Go For Help

Chapter Eleven:
State-by-Sate Foreclosure Law & Proceedings Summary
INTRODUCTION: What Today’s Mortgage Crisis Is All About

Are you finding it more and more difficult to pay your mortgage every month? Are you

worried that the bank will foreclose before you have the chance to get caught up on your

payments? You’re not alone.      With millions of people poised to lose their homes in the

next 2-5 years, the nation is facing a financial mortgage crisis like never before.



Interest is rising. Real estate values are dropping. And far too many of today’s

homeowners will soon find themselves stuck with adjustable rate mortgages they had

originally planned on refinancing after their initial honeymoon period of low interest/no

principal payment periods ended.



Counting on annual pay increases and higher equity to help them refinance in a few

years, many are discovering that weak credit, a lack of income and dropping property

values have left them responsible for monthly installments that have grown beyond their

ability to pay.



For the two million-plus mortgagors facing rate adjustments in the coming months, the

statistics are startling: more than 300,000 home foreclosures are imminent, with as many

as 1.8 million more homeowners expected to find rising mortgage payments too much for

their budgets to bear over the next 18 months.



In the hope of curbing any mass foreclosures, many credit agencies and financial

institutions were hoping for a large-scale government bailout, which now doesn’t seem
imminent. This leaves the vast majority of those facing foreclosure to find a way to keep

their homes all on their own.



Foreclosure was once a source of shame. Not anymore. With more and more people

facing the fact that they simply can not make their monthly mortgage payments, the term

foreclosure is becoming commonplace.



How Did We Get Here?

No matter how common foreclosure becomes, it will continue to cause devastation to the

families affected by it. In order to overcome the crippling financial effects of foreclosure,

each person who faces its wrath must first comes to terms with the reasons they got stuck

in its path in the first place.



With millions of homes in jeopardy, many people across the nation are placing blame

solely on the financial institutions which granted mortgages in the last several years using

lax loan requirements; slick marketing practices; and a variety of new adjustable-style

loans that people neither knew much about nor clearly understood. Whether or not

anyone truly wants to face it, the fact remains that every homeowner – whether risking

foreclosure or not -- must take responsibility for any part they may have played in

making poor financial decisions at a time when they should have been erring on the side

of conservative caution. Without a clear understanding for the many reasons why a

homeowner agreed to mortgage terms that allowed their payments to escalate beyond
their ability to pay within a few years, many are destined to repeat their mistakes again in

the future.



There are many things fueling the current mortgage crisis: interest rate increases; lower

property values; and scheduled mortgage adjustments, to name a few. Homeowners who

opted for less traditional forms of financing that allowed them to put off paying normal

(albeit higher) interest rates or even principal on their loans for the first few years are

now facing the reality of paying for a $200,000 loan on a $50,000 a year income.



Making matters worse, the vast majority of those taking out these adjustable rate loans,

also financed most (or all) of their down payment monies and closing costs with a second

line of credit in order to buy the house at all.



While some do have the ability to pay a fixed-rate combination loan, they are unable to

refinance these 100%-plus mortgages due to a loss in equity caused by dipping property

values in many areas across the nation. Simply put: they now owe more than their houses

are worth, which means selling is not even an option unless they have the cash in hand to

make up the difference at the closing table.



So, what is the option for a homeowner strapped for cash and unable to either sell or

refinance their current loans for a more stable fixed-rate, fixed-payment loan? Fending

off Foreclosure is a book designed to guide the struggling homeowner through the entire

foreclosure process, offering practical tips and advice on how to both avoid foreclosure
altogether, as well as how to make sure it wreaks the least financial damage as possible

on your life and your family when it does indeed become apparent that it is your most

viable option for getting out from under a debt you have no means of paying off.
Chapter One: What Foreclosure is All About

When a mortgage holder fails to make their minimum monthly mortgage payment, their

creditor, or lender, has the legal right to place a lien on the property, ultimately taking

possession of the home and property in order to recoup any financial loss they may have

suffered. What most borrowers don’t realize is that the law allows a creditor to foreclose

on a property after just one missed payment, although most wait several months, or until

it becomes blatantly clear that the mortgage holder is unable to make restitution before

beginning the repossession process.



The first step to foreclosure is called Acceleration. This is a way to determine exactly

how much the mortgagor owes the mortgage holder. For instance, if you have a

$100,000 mortgage, and you’ve only paid $20,000 in principal payments since obtaining

the loan, the lender may “call in your loan” requiring you to pay the entire $80,000

balance, if your mortgage contains an acceleration clause. If, however, it does not

contain an acceleration clause (which is very unusual these days), the lender may be

required to wait to foreclose until all payments come do (which is basically at the end of

the loan term), or to ask the courts to divide the property and sell it in pieces as each

installment comes due.



There are many forms of foreclosure. The original type of foreclosure, called strict

foreclosure, used to enable the creditor to repossess the mortgage holder’s delinquent

property in total, with no requirements to sell it and give the borrower any of the “extra”

funds. This type of foreclosure is no longer allowed in most states (except Connecticut,
New Hampshire and Vermont). Due to varying state laws regarding foreclosure, we will

concentrate on the two most common forms of foreclosure right now, leaving the others

for future discussion.



Foreclosure by judicial sale is the most common (and preferred) form of foreclosure

available in every state in the nation. It requires the lender and borrower to appear before

a judicial hearing where it is determined if the property can be sold to pay the remaining

mortgage and fees. Once the court agrees to the sale, the property is sold via a public

auction, with proceeds going first to pay off the initial mortgage loan; then to pay off any

other lien holders; with leftover funds being given to the mortgagor. While this process

can be quite swift when no other liens are held on the property, since the auction can take

place as soon as a title search is complete, it can take months if others have placed liens

on the property, since they must each be legally notified under strict time requirements.

Under foreclosure by judicial sale, the entire foreclosure and sale process is strictly

monitored by the courts to ensure a fair and equitable outcome for all.



Foreclosure by power of sale, allows the property to be sold independent of a judicial

overseer. It is generally the faster way for lenders to foreclose on a property, allowing

them to auction off the property in order to recoup lost funds. Again, the mortgage

holder is paid first, followed by other lien holders, and finally the mortgagor.



In the case of each of these types of foreclosure sale, the starting bid is usually the

amount owed to the bank. Of course, some states allow the starting bid to be below that
amount. If the auctioneer fails to get the amount owed on the property, the deed is

transferred to the lending institution which originally secured the loan. Following the

deed transfer, they are free to sell the property through any means possible (private sale; a

second auction; deed transfer; etc) to recoup whatever amount they can.



Here’s an important point for homeowner’s to be aware of: in the event that mortgage

insurance or PMI is not held on the property, and the mortgagor defaults on the loan,

resulting in the foreclosure of their property, they may still be responsible for some loan

amounts, despite the repossession and sale of their home.



In the event that the home is sold for less than the amount owed on the loan, the lender

can petition the court for a deficiency judgment, which would require the borrower to pay

back any difference between the amount owed and the funds raised through the sale of

the property. While first-mortgages usually do not qualify for deficiency judgments,

most second mortgages, lines of credit and equity loans do! So, if you have an $80,000

first mortgage balance and a $25,000 equity line of credit tied to your property and the

bank forecloses and sells it for $90,000, you will still be responsible to pay the $15,000

equity loan balance back, even though it is no longer attached to your property.



How common is this type of non-recourse debt? Much more common these days than

ever before, thanks to over borrowing practices in recent years, coupled with spiraling

real estate values in some areas. This is leaving many struggling property owners with

residual debt long after their homes are foreclosed and sold.
Left unpaid, this can have devastating effects on your credit and ability to purchase

another home in later years.
Chapter Two: What to Do When Facing Foreclosure

Facing foreclosure is never easy, but one thing is certain, now’s the time to face it head

on. Burying your head in the sand, or standing frozen with fear will only lead to financial

ruin and the loss of your home. Being proactive can often mean the difference between

salvaging what’s left of your home and credit, and losing everything!



Contrary to popular belief, lenders do not want to foreclose on your property. They are

in the business of giving out loans, not holding real estate. Besides, foreclosure is

expensive. The average foreclosure process costs a lender app. $58,000, plus whatever

monies they may lose on the final sale of the property. Simply put: foreclosure is bad

business. That’s good news for those finding it difficult to make their current mortgage

payments and fear that their lender may foreclose.



So, how can you stave off foreclosure? The first step is accepting that you are in trouble

and need help. Next, it’s imperative that you contact your lender and let them know

what’s going on. In the vast majority of cases, those who lose their homes due to an

inability to make their mortgage payments do so because they ignored their lender’s

phone calls and letters which clearly stated they could negotiate new payment terms.

Sure, you’re still going to have to pay back that loan, but there may be alternatives

available to help get you through this financial hurdle and save your home.
Negotiate With Your Lender

With a national foreclosure rate this year alone of one filing for every 111 households

(double what it was just a year ago), lenders are more eager than ever to work with

borrowers in order to save themselves the hassles and money of foreclosing. The key to

negotiating the best deal for both you and your lender is to contact your mortgage holder

as soon as you realize that you can’t make your payments! If you are laid off from you

job on Friday, pick up the phone on Monday and explain the situation. They will help!



If, however, you are one of the millions whose mortgages are now readjusting to higher

payments, be sure to evaluate your financial situation now – before your rate hike -- and

ask about your options before you miss any payments. Falling behind even a month or

two can drastically reduce your options. Lenders consider proactive borrowers to be

more stable and responsible and are more willing to work out new payment terms.



Be sure to have all of your financial information on hand when you make your call, and

be prepared to have several phone conversations with several different people before

finding any solutions. Fending off foreclosure can be frustrating. Do your very best to

be calm and polite at all times. Whether you agree or not, they are doing you a favor and

you need to be as cooperative as possible.



Carefully explain why you can no longer meet your payment responsibility (illness, job

loss, divorce, higher payments, etc). Next, tell them exactly how much you are able to
pay right now, and in the future. Calculate this amount carefully, because once you agree

to a new payment, you will be required to make it or risk losing your home!



Other than your health insurance and food costs, your mortgage is considered your most

important bill, so don’t be surprised if your lender expects you to trim all non-necessities

form your budget including cable TV, cell phone and even computer internet access in

order to make your payment.



Look at ALL of Your Options

Once you begin to really look into the options available, you may be surprised at how

many ways there are to stave off foreclosure. True, they may not all be the option you

desire, but the important thing right now is to consider what’s best for your financial

security and future. Keeping your home may seem like the most important thing right

now, but that isn’t always practical, and you may need to consider other alternatives that

better protect your credit and ability to move forward on solid financial ground.



Once you taken the initiative and contacted your lender, they will more than likely send

you a financial packet and worksheet to fill out. In it will describe some of the options

available:

                                   Short-Term Solutions

Forbearance is a way to defer part or all of your monthly payment for a pre-determined

amount of time. It is most commonly used during a short-term emergency such as an

unexpected illness; job loss; divorce; etc. In forbearance, the lender agrees to a
temporary reprieve from all or part of your payment (commonly either just the interest or

just the principal) with no negative repercussions. This option is usually only considered

if you have not fallen behind in payments; have a very good to excellent credit rating; and

have the forethought to contact your lender as soon as it becomes apparent that temporary

help is needed. Mortgage companies may either require you to pay the deferred amount

in one lump sum at a later date, or tack it onto the end of your loan by extending the term

for a few months. Of course, interest will continue to accrue on the loan, which in itself

will add time to the term.



Reinstatement occurs when you are able to bring your account up to date by a specified

date by paying pay off the entire back amount in one lump sum. This is often used when

borrower’s are expecting (and can prove) that they have a significant amount of income

coming in from a pay raise; bonus; tax return; property sale; retirement account buyout;

or even an inheritance. The mortgagor is still usually responsible for all late fees and

interest (although this too can often be negotiated), but having a formal reinstatement

allows your credit rating to remain unmarred until the money to pay off the debt becomes

available.



Repayment Plan

Repaying the back amount is often a good solution for those who fell behind in payments,

but can now make the full payment, plus a bit extra. Repayment plans usually combine a

portion of the past due amount with the current payment until the entire delinquent

balance is paid in full.
Loan Modification

For those who are once again able to make their regular loan payments, but are finding it

difficult to make additional payments for past dues amounts, a loan modification may be

the best option. Loan modifications are used to extend the life of the loan in order to

keep the payments the same while still paying back past due amounts.

                                   Long-Term Solutions

Sometimes, as is the case with many of today’s adjustable rate mortgages, the short-term

solutions described above are not enough to save their property. For more extreme cases

you may need to consider one of these long-term solutions:

Refinancing. Refinancing your current mortgage into a fixed-rate loan may be a good

option for some, but many are finding it difficult to refinance for many reasons:

      they can not afford fixed-rate payments

      their home has lost value since they purchased it, so they no longer qualify

      they have been late or missed payments and it has affected their credit scores,

       making them ineligible for a new loan. Again, the key to refinancing is to begin

       the process before you have begun to fall behind on payments

In the most severe cases, keeping your home may no longer be an option. Even if you

can not remain in your home, it is important to negotiate a settlement with your lender to

fend off foreclosure and the damage it will do to your credit to allow you to move

forward in a new home once you get back on your financial feet again.



FHA-Secure Initiative
The government-backed FHA-Secure Initiative, passed in August 2007, will enable more

than 240,000 homeowners with good credit to refinance their current untraditional teaser-

rate mortgages into low-interest, low cost- FHA backed fixed rate mortgages. These new

loans will be offered to those who fear that increases in their adjustable rate loans will be

higher than they can afford in order to help keep their homes. Like other FHA loans,

borrowers must have good standing credit; the ability to pay their monthly mortgage

payments; and have at least 3% equity in their homes to qualify. In return, they will be

able to refinance their current adjustable mortgage into a long-term fixed rate (fixed

payment) loan that may feature lower interest rates than they would normally qualify for.

In addition, the program will feature some risk-based premiums that allow riskier

borrowers to obtain loans at a higher cost.



Assumption is one way of freeing yourself from the burden of a mortgage without

damaging your credit. In an assumption, the lender permits you to find someone to

“assume” responsibility of your mortgage. Basically, they are buying your home without

actually applying for their own mortgage and paying closing costs. It is often a good

compromise for those who have little or no equity in their homes and who do not expect

any payoffs at settlement.     Plus, it’s a great way for someone who can afford the

payments to purchase a home at under current market value.



A Short Payoff occurs when you must sell your home for less than the amount due on

the loan. Of course you will need your lender’s permission to actually proceed with a

short-payoff sale since they will not be getting all the money owed them.       While short
payoffs haven’t been traditionally much of an option for homeowners in the past, more

and more lenders are agreeing to this solution (assuming they aren’t going to lose too

much on the deal), due to the recent influx of foreclosure listings in the last year.



In areas of the country where real estate has taken a sharp downturn in both sales and

value, short payoff allows the owner to get out from underneath their mortgage

commitment, and allows the lender to save the high cost of foreclosure by giving the

owner permission to sell the home for less than the amount owed. It is usually only

considered if a formal bid has been placed by a pre-approved buyer for less than the

payoff amount to clear the property’s title.



In order to qualify for a mortgage, many lenders require homeowners to hold Private

Mortgage Insurance (PMI) on the loan until they have at least 20% in equity. This

protects them in the case that a homeowner falls behind in their mortgage and is unable to

get enough from its sale to payoff the current mortgage. However, when property values

decline after a mortgage is obtained, some homeowners find themselves owing more than

they can recoup from a normal sale. This also means that a lender will be unable to sell

for the amount owed either, making short payoff an option.



When a lender agrees to a short payoff sale, they are also agreeing to take the amount of

the sale (even if it is thousands less than the mortgage total owed), and consider the debt

paid in full. Keep in mind, however, that even though you are officially “paying off”
your mortgage, your credit report may (or may not) list the payoff as a short sale, which

can negatively affect it for several years.



Of special note: short payoffs are usually only considered in a weak real estate market

when it is clear that the lender will not be able to recoup their initial mortgage investment

by taking possession of the home themselves and selling it at auction, and is only

interested in avoiding further costs by following through on a complete foreclosure.



Lenders who see potential profit in a property may also agree to a deed-in-lieu, which

allows the borrower to transfer the deed to the mortgage holder in exchange for a

complete cancellation of the mortgage debt. Most lenders require the homeowner to try to

sell their property for at least 90 days before agreeing to a deed-in-lieu. Keep in mind

that you lose all rights to future earnings should the house be sold for more than you

owed the lender.



Selling Your Property on your own is also a possibility in a strong market. Oftentimes,

a lender will agree to one of the short term payment alternatives listed above if you have

agreed to put your house on the market, giving you the time to sell it and pay off the debt.



Filing Bankruptcy is a drastic measure, but it can help keep you in your home a bit

longer. Once it has become apparent that you will lose your home, filing Chapter 13

bankruptcy will legally halt the foreclosure process until the court can establish a

repayment schedule for your mortgage and other debt. Not something to consider lightly,
bankruptcy can affect your ability to borrow money in the future for up to 10 years, while

a foreclosure will only affect your credit rating for up to 7 years.



Contact a Non-Profit Housing or Credit Counseling Agency

With so many options to consider, it may be difficult to know which is best for you and

your family – not to mention your financial security. Once you’ve taken the step to

notify your lender of your inability to make your current payments, you may want to

consider meeting with a non-profit housing or credit counseling agency for help. They

are qualified to look over your financial situation and help you choose the most

appropriate option, as well as negotiate with your lenders. In many cases, meeting with

them can also help to keep your creditors at bay, since they are made aware of the fact

that you are looking into responsible measures to pay back your creditors in a timely

fashion.



The United States Department of Urban Development (HUD) can put you in touch with

any local agencies or organizations that can assist you for little or no charge. Call 1-800-

569-4287 for details.
                             Tips for Avoiding Foreclosure

Facing foreclosure? Here are a few quick tips to keep in mind:



Never Ignore The Problem. It may be easier to throw those late notices in the trash or

stop answering your telephone, but ignoring your creditors won’t help – it may, however,

hurt any chances you have of negotiating a solution that will allow you to keep your

home – and your credit intact.



Respond to all Communication with Your Lender. Once it becomes clear that you are

finding it difficult to make your monthly mortgage payments, your lender will assign

your file to a credit agency or internal counselor. Chances are their first step to recouping

funds is to find a solution that works for both of you. Respond to all correspondence to

show your willingness to “make things right” and get back on track.



Know Your Mortgage Rights. Get out those loan documents (yes, all of them), and start

reading. You may be surprised at what you discover! Many people these days lose their

homes because they have no idea what terms they agreed to when they took out their

mortgage and have no idea what their legal rights are regarding foreclosure. Learn

everything you can about the foreclosure rules and processes in your state to be better

prepared for answering questions and handling what comes next.



Understand All of Your Options. Losing your home to foreclosure isn’t always a cut and

dry procedure. There are things you can do to be proactive and keep your creditors at
bay, while managing to save your credit rating for the future. Carefully consider ALL of

your options – even the ones you aren’t thrilled about.



Seek Help. Have credit agencies threatening to sell your home and don’t know what to

do next? Get help! There are plenty of non profit agencies and organizations all over the

country who are willing and able to lend a hand. But, try and avoid for-profit agencies

that charge large sums of money to “fix” your financial woes. No one can get you out of

this jam – but they can help ease the burden and give you the tools you need to make it

through.



Create a Budget. What got you into this financial trouble in the first place? Without a

clear understanding of the money issues (and expenses) that caused your spiral into

financial ruin, you’re bound to have problems again in the near future. Now’s the time to

get control of your spending; evaluate what you can (and can not) afford; and make the

appropriate budget adjustments.



Use Your Assets. Your first priority should be to keep a roof over your head. That said,

it may be time to sell off any assets that you have including that second car; timeshare;

boat; etc., and consider borrowing money from your retirement or investments to bail you

out of this jam. However, keep in mind that these are only temporary fixes, and unless

you make some drastic changes, you’ll simply find yourself in trouble again with nothing

left to sell to bail you out.
Stay in Your Home. Some people assume that foreclosure is imminent and move from

their home. Don’t! You may have more options if you are still living in your home, than

if you’ve already moved out.



Watch for Scams. Scam artists can smell fear, and most people facing foreclosure are

fearful enough to grab at any hope they stumble across in order to keeping their home.

Avoid scams by remembering this: if it seems too good to be true, it probably is.
Chapter Three: Special Circumstances

Depending on the type of mortgage loan you have, and your life circumstances, there

may be special help available to keep you in your home – at least for little while. Certain

people, under certain circumstances may have much more leniency in falling behind in

their mortgage payments than traditional homeowners.

                                 FHA/VA Backed Loans

The Federal Housing Authority (FHA), has been backing American mortgages for low to

middle income borrowers since 1934. When you take out a FHA- or VA-backed loan,

the federal government guarantees that the lender will be paid in full, even if you become

delinquent in your payments. This payment guarantee can give the homeowner

additional safeguards in response to possible foreclosure.



The first step to obtaining special help for any homeowner who realizes they can not

make their monthly payments (either temporarily or permanently), should call the FHA

National Servicing Center at 1-888-297-8685 to be assigned a loss mitigator. This will

be your advocate who will look over your financial situation, help you determine the best

course of action and negotiate new terms with your lender. Loss Mitigations is a great

way to thwart the start of foreclosure proceedings. Keep in mind that to qualify for any

special options offered by FHA, all homeowners must request mitigation within 6 months

of becoming delinquent, and the process must be complete before the 13th late payment is

due. Exceptions to this rule apply if:

      the loan is reinstated

      you agree to special forbearance
      the loan is modified

      the loan id reinstated by a partial claim

      you sell your property

      you deed your property back to FHA

      the lender has already initiated foreclosure



In addition to the pre-foreclosure options already discussed (forbearance, reinstatement,

deed-in-lieu, among others),, there are a few unique options available to those holding an

FHA or VA loan:

Partial Claim

A partial claim is a special interest-free loan given by FHA in the amount of the

delinquent payments, interest and fees. It is designed for those who have become

delinquent due to a temporary job loss; illness; accident; or natural disaster. In order to

qualify, you must be able to prove that you are now able to make your monthly payments.

Keep in mind that this is a one-time only loan, and it will require a lien to be placed on

your property. You will not be required to make monthly payments on the loan,

however, until your original mortgage is paid in full or you sell your property.



Non-Retention Options

Although non-retention options (such as selling your home and transferring the deed back

to the lender or FHA), are not designed to keep you in your home, they can be used as a

way to transition you into more affordable housing, and may help get you into

government sponsored low-income housing when necessary.
                                    Disaster Area Victims

When a natural disaster strikes, the last thing you want to worry about is losing your

home because you can no longer afford to pay a mortgage on an unusable house in

addition to rent on your new living quarters. Yet, it happens all of the time.



If your home has been damaged by a flood, hurricane, tornado or some other event that

the President has declared “a natural disaster,” than you may qualify for special mortgage

relief.

Those holding conventional mortgage loans may qualify for disaster relief offered by

their lender, as described in the provisions of their loan. This may include:

         the suspension of payments for 1-6 months

         a reduction in payments for up to two years

         a longer pay back period (basically an extension of your loan terms)

         waiving any late fees for a set period of time

         waiving negative credit reporting immediately following a disaster

    Even if your loan terms do not offer any disaster relief provisions, be sure to check

    with your lender for special consideration when an emergency such as this arise.



    When the President declares a specific area as a disaster zone, many special programs

    are put into place for both conventional borrowers and FHA/VA borrowers. This

    may include government backed low-interest or interest free loans and grants that can

    be used for living expenses, repair costs or to make mortgage payments. Other
    mortgage assistance initiatives may also include special payment options supervised

    by HUD, which may actually make your payments for you for up to one year.



    Those carrying FHA mortgages automatically qualify for a 90-day foreclosure

    moratorium (or freeze) following a natural disaster if:

       they live within a Presidential-declared disaster area, you are automatically

        granted a 90-day foreclosure moratorium without even requesting it

       someone in your household was killed, missing or injured due to the disaster

       if your financial ability to pay your mortgage was affected by the disaster



If you’ve made every attempt possible to arrange payment options with your lender

following a natural disaster to no avail, contact the closest HUD-approved counseling

agency immediately at 1-800-297-8685 and they’ll assist you before it’s too late.




                              Help for Military Homeowners:

                         Servicemembers Civil Relief Act (SCRA)

Don’t worry about losing your home if you are called up for active military duty. No

lender is permitted to foreclose or seize property of an active military serviceperson until

90 days after they return to civilian life.
In addition to this foreclosure moratorium, those who obtain a mortgage prior to

enlistment or the call to active duty qualify for a reduction in interest rates to help keep

their payments in check.



If you or your spouse are in the Army, Navy, Marine Corps, Air Force, Coast Guard,

Reserves or National Guard, or are a commissioned officer in the Public Health Service

and the National oceanic and Atmospheric Administration and are called up for active

military duty for more than 30 consecutive days, you may find it difficult to make your

mortgage payments on your government stipend. One way to lower your monthly

payments is to notify your lender that you would like to take advantage of the reduced

interest rate of 6% under the Servicemember’s Civil Relief Act (SCRA). Under this

federal mandate, any active military personnel who already had a mortgage at the time of

tier enlistment or active duty orders can have the interest rate on their mortgage lowered

to no more than 6% during their active tour. Depending on their current interest rate,

this can have a significant impact on their monthly payment. The amount that is saved

from this reduction does not have to be paid back, but is discontinued upon their release

from active duty.

As soon as a military serviceperson receives their orders, they should contact their lender

for the discount. Be prepared to give them:

      a copy of your military orders

      your duty notice

      FHA case number
      Evidence that your mortgage debt was procured before your enlistment/active

       duty status

      Your activation date

   Although a lender who feels that your active duty status does not interfere with your

   family’s ability to pay your current mortgage interest, can ask a court to deny your

   request, this is almost never done, since most military service people make much less

   during active service than they did at their civilian job.



In addition to the interest rate reduction, some military families may also qualify for a

reduction in their monthly payments (which will have to be paid back after returning

home form military service); and/or a complete stay in payments for a specified amount

of time. These conditions are not mandated by law, but are often considered for military

personnel facing financial hardship.
Chapter Four: Avoiding Foreclosure Scams

Those facing foreclosure are often more open to being scammed than any other time in

their lives. Why? The uncertainty of losing their home can be terrifying, causing many

people to jump headlong into risky behaviors, falling for unscrupulous schemes that

promise a quick resolution to their financial woes. This is not the time to be reckless.

Look over your options carefully and be sure to check the validity of any and all options

offered from every source – even those that appear reputable.



With more than 1 million homes already in foreclosure this year alone, and countless

more expected to be filed in the coming months, it seems as if “foreclosure rescue scams”

are everywhere. The scams themselves vary from area to area, but the premise remains

the same: these scam artists prey on the homeowners fears and make promises they can’t

keep.



The simplest scam involves expensive “credit counseling” offered by for-profit

organizations that promise to help homeowners negotiate lower interest or monthly

payments or promise to negotiate a fair settlement that will allow the homeowner to fend

off foreclosure – for an exuberant fee, of course. While there are some agencies that can

help in this manner, most reputable ones are non-profit organizations that work for free.

Be wary of anyone who promises to “wipe the slate clean” on your debt with little or no

repercussions.
Although this type of scam can cost you big money (and some valuable time in

negotiating with your creditors), it usually doesn’t result in the loss of your home, as

some other, more diabolical schemes may.



One popular scam gaining momentum these days is the “save your house” and “pay off

your mortgage” scam. In this scheme, homeowners are advised to “sell” their home to

the “agency” for the amount of the mortgage payoff (which is usually much lower than

the house’s actual value), and then rent it for a specified amount of time with the option

to re-buy it when they get back on their feet. Little does the homeowner realize, but as

soon as they sign over the deed to their home, the new owner is not legally required to

either rent it to them or sell it back. They’ve just lost their home.



Other scam artists make arrangements to pay off the homeowner’s mortgage for a flat

fee, thus becoming their new mortgage holder. However, during the settlement, the

homeowners sign so many papers they don’t realize that they’ve just signed over the title

to their home – permanently! In both of these scenarios the homeowner has lost all legal

rights to their home.



Before talking with anyone regarding a possible foreclosure and property seizure, speak

with you lender about other options! Honestly, they don’t want to foreclose, but will if

left to believe there is no other option in getting back their investment.
So, how can you avoid being scammed by one of these unscrupulous “home savers?”

Watch for these warning signs:

      Be suspicious of any person or company that calls themselves a mortgage

       consultant or foreclosure service

      Never trust anyone who solicits business through the mail or door-to-door

      Be wary of anyone who offers to lease back your home or allow you to buy it back

       in the future. Ask yourself, what do they really have to gain by such an investment

       arrangement?

      Watch out for any company who makes promises to save your credit or save your

       home, especially with little or no effort or consequences on your part. The real

       experts know this is unrealistic.

      Never sign any documentation you don’t completely understand. If it doesn’t

       make sense, wait!

   Remember this golden rule of scamming: if it sounds too good to be true, it usually

   is. Legitimate company’s will sit down with you and go over all of your financial

   details, then present you with a detailed plan for fending off foreclosure. And

   remember, no matter what service or agency you choose, get everything in writing!

   Never accept any verbal agreements, and make copies of all paperwork for your own

   personal files. Finally, have a lawyer review all documents before signing them.

   Sure, it may cost a little more, but it’ll safeguard your interest – and your house – in

   the long run.
                    Things to Watch Out For at the Closing Table

For too many buyers, their first sense of mortgage trouble comes before they are ever

handed their house keys. With few laws on the books to help safeguard buyers from

“bait & switch” mortgage practices, some buyers are reporting unfair changes in their

final mortgage terms just minutes before the sale is complete, leaving them with few

options but to complete the sale and figure out how to handle the problems later.



One common complaint by mortgagors in recent years are lenders who change their

interest rate (or worse yet, inform them at the closing table that they really only

qualify for an adjustable rate loan), which both may increase their payments beyond

their comfort levels.



So, how can you ensure that you won’t be stuck accepting a mortgage that you aren’t

comfortable with?

   Watch for clauses in your mortgage contract that allow lenders to change the

    terms of the agreement before the closing. Some may give you an “estimate” of

    final closing costs and interest rates a day or so before your scheduled closing, but

    do everything in your power to restrict their ability to change the terms days or

    even minutes before settlement.

   Lock in your mortgage rate as soon as you can. With fluctuating interest rates,

    many lenders encourage borrowers not to “lock in” their interest rate for fear that

    interest will drop. What they often don’t tell you is that if interest rates rise after

    you’ve locked in they can’t charge you the higher rate! Those who simply can’t
    afford a rate hike should lock in their rate as soon as the law allows (usually

    within 30-60 days of the loan’s scheduled closing date).

   Make it clear to your lender that ANY changes in rates or terms WILL NOT be

    tolerated. Sure, they are going to tell you that they can’t make any real promises,

    but stick to your guns. Call a week, a few days and again the day before your

    closing to ask for final terms, rates and closing costs. Be sure to clearly state with

    your broker with each conversation that you are simply verifying all of your terms

    and costs and that any changes may mean a cancellation of the contract. Lenders

    usually count on the fact that you have invested so much of your time, money and

    emotions into the sale at this point that you wouldn’t dare not go through with it!

   Be prepared to walk away from the settlement table if necessary. A common trick

    of mortgage lenders in recent years has been to tell a borrower that they are

    approved for a fixed-rate mortgage only to show up at the settlement table with

    paperwork that features a higher-interest adjustable ate mortgage. If this happens,

    you have to be prepared to either cancel the entire deal and walk away (which is

    easier said then done when all of your belongings are on a moving truck and you

    have nowhere else to go), or to complete the sale under their terms and take the

    consequences. Unfortunately, thousands of buyers in recent years have completed

    these types of sales under duress, only to discover in a few months or years that

    they are unable to refinance these adjustable rate mortgages (as the lender

    promised) and can not afford to stay into heir homes when their payments

    increase beyond their ability to pay.
      Always have a back-up plan and make sure that your lender knows it! Until

       you’ve signed that last paper on your new home, be sure you have an emergency

       plan to back out of the deal. That may mean a place to stay for a few days (or

       even weeks) until you can negotiate new terms with another lender; or even the

       loss of the sale of your existing home if you are selling one property to by

       another. These types of closings are usually help right after each other, so be

       certain of your final mortgage terms before following through on the sale of your

       existing home to ensure you a aren’t left homeless if the new deal falls through at

       the last second.



Non one wants the added stress of having to walk away from the house you’ve invested

your heart and money into because of a lender’s mortgage bait and switch. But, in order

to ensure that you aren’t left with a mortgage you won’t be able to afford in a few years,

be sure that you are signing papers that outline the exact mortgage terms that you initially

agreed to and are comfortable with. Otherwise, walk away. More often than not, when a

lender realizes that they’ll ultimately lose the sale, they are willing to make a few quick

changes back to the terms you initially agreed upon.
Chapter Five: After Foreclosure … What It Really Means to Your Financial Future

No one wants to lose their home due to foreclosure, but unfortunately it is happening

more and more these days. The question is: how will it affect your future? Foreclosure is

serious business that can have long lasting effects on your finances and personal life.



   Having your home foreclosed on doesn’t just mean that you won’t be able to own a

   home for awhile. It can also mean that you can’t obtain student loans for yourself (or

   your children) to pay for college; buy a new (or even used) car; hold a credit card, and

   it may mean that you have to pay higher taxes and pay higher insurance rates. All of

   this can be a direct result of foreclosure.



   Destroyed Credit Rating

   Foreclosure destroys your credit rating for seven long years, even if you’ve stayed

   current on all of your other bills. Creditors want to see that you’ve taken the proper

   steps to rebuild your credit score – and their trust – before they risk lending you

   money (even a small amount of money) again. This can mean an inability to obtain

   any type of unsecured loan (such as student or personal loans or even credit cards),

   for years following your foreclosure.



   Even when you are finally able to obtain a secured loan (as may be the case with a

   car), the odds are you’ll pay a much higher interest rate than those with better credit,

   and be required to pay off the loan faster. It is not uncommon for the first loan or

   two that you receive following any type of foreclosure or bankruptcy to carry interest
rates toppling 15% or even more! This, of course could cost you thousands in

additional payments over the course of the loan.



Once you’ve repaired your credit, the odds are any mortgage lender who even

considers lending you money for a home again will also require a hefty down

payment of 20% or more (in cash); a higher interest rate; and a shorter loan term.



Higher Insurance Rates

An inability to obtain a competitive loan isn’t the only repercussion to a poor credit

rating. More and more often today, insurance companies are using a “consumer risk

core” which is determined y your credit score to determine how low (or high) your

automobile, life insurance and other insurances cost.



Missed Job Opportunities

Want a better job? Better keep that credit score high! Many employers are now

making credit checks of prospective employees and require a minimum FICO score in

order to get the job. A foreclosure can send your credit rating tumbling by hundreds

of points, which could ultimately keep you from your dream job.



The Other Negative

Your credit score isn’t the only thing which can be negatively affected by a home

foreclosure.

Increased Taxes
Losing your home can result in an increase in your federal taxes for several reasons.

When a lender forecloses on a property, they are legally permitted to deduct the

interest lost from the life of the loan on their federal tax return. The IRS can then

come back on the homeowner, requiring them to claim that lost interest as income of

their own personal tax return, costing them thousands in additional taxes. Sound

farfetched? It is completely legal!



In addition, once you lose your home, you no longer can benefit from any of the

home deductions available at tax time, which will ultimately increase your total

annual tax bill.



Loss of Personal Equity

For most people, their home is their biggest source of equity in the future. It can be

leveraged to put your children through college, or finance your retirement in the

future. Without it, you have no safety net for future emergencies. The money in your

savings account is all that stands between you and a serious emergency. The loss of a

home can be detrimental to your future financial standing.



Emotional Upheaval

Unfortunately, many people undergoing whose home has been seized and sold in

foreclosure often undergo serious mental and emotional trauma shortly afterward.

Many experience an overwhelming sadness and grief, as well as feelings of

ineptitude, worthlessness and failure. Depression can result if these feelings aren’t
dealt with by a professional right away. Those facing foreclosure should plan to see a

certified counselor even if they seem to handling the situation well, just be certain

they aren’t bottling up feelings that may need to be faced once the immediate

emergency is over.



As you can see, home foreclosure means more than just losing a house. It can also

change the way you live, work and feel about yourself for weeks and years to come.

The important thing is to recognize the changes that it can cause in your life and deal

with each one individually in order to minimize the impact it has on yourself, and

family.
Chapter Six: Raising Immediate Cash to Fend Off Foreclosure

All-too-often people facing foreclosure dismiss some of the very ideas that could

ultimately save their home from foreclosure in the first place. One is to face their

financial strife head on, streamline their spending as soon they recognize they are in

trouble, and look for resources everywhere.



Sure, most people don’t have a secret stash of cash hidden away for an emergency

such as this, but most can get their hands on a few thousand dollars to get caught up

on those late payments if they really think about it.



The first step is stripping your budget to free up as much of your weekly paycheck as

possible to make those mortgage payments. Right now your main priorities are:

   health insurance

   food

   mortgage

Basically, everything else can go if it must – at least temporarily. It may seem

impossible to give up your second (or even first) car, and what can forgoing that

Friday night pizza really accomplish? You’d be surprised at how those little

incidental expenses add up. The average middle income wage earner can usually cut

their monthly budget by 20-50% if they cut out all non-essentials.



Don’t underestimate the value of shutting off your cable; internet access; cell phones,

etc. Keep a basic land line, void of any extras (including long distance). Start
hanging you laundry on a line outside to dry and save up to $100 a month in electric

charges. Shut off the air conditioner unless there is a heat wave in the summer

months and lower the thermostat in the winter. For every degree below 70 you put

your thermostat, you will save app. 5% of your total heat bill.



Stop eating out altogether (including school lunches). Brown bag it instead, and avoid

all activities that cost money right now. Your kids may love playing basketball, but if

you’re ready to lose your home, you simply can’t afford any of it – at least for now.



When facing the threat of foreclosure, you may even have to consider halting

payment on all other debt including loans until you find a way to handle your

mortgage payment. It is true that this will damage your credit rating, but not as badly

(or for as long) as losing your home to foreclosure.



Start with all unsecured debt – credit cards; store accounts; etc. Notify your creditors

that you have hit a financial brick wall, and either negotiate a smaller payment, or

stop paying altogether for a few months. That should free up several hundreds of

dollars a month.



Next, get rid of your second (or dare I say third) car. It may be a hassle to revert to a

one-car family household, but it may make the difference between having a

household and not having one. Even if your car is paid off you will save on gas,

maintenance, licensing, inspections, insurance, and parking. Either pay someone to
get you back and forth to work or learn how to use public transportation. Plus, you

can sell it for cash and use that money to pay back any delinquent mortgage costs.

 In very severe situations, some homeowners have even opted to get rid of their main

vehicle (at least temporarily) until they became financially stable once again. Of

course this can be extremely difficult if you have children or must commute very far

for work.



Now, let’s look at all the other “stuff” you own. It’s time to start selling! No matter

how big or small the item, if it isn’t essential sell it! You may be surprised at how

much money you may be able to raise through yard sales; consignment; internet sales;

and even auctions by selling all of your excess stuff. From clothes, jewelry, toys,

furniture, knick knacks, collectables and more, most people can raise at least $500-

$1,000 (most even more), by selling off their stuff. While it may be difficult to part

with your belongings, consider this: where are you going to store them when you lose

your home?



As if it isn’t obvious, now is also the time when you sell off any other large ticket

items you may have accumulated: sheds, swimming pools, boats, and campers,

basically anything that you don’t need to survive!



Once you have stripped your monthly budget of all excess and sold off all of your

unnecessary belongings, it’s time to look at other equity you may possess. Start with

your retirement funds and investments. While it is usually never a good idea to
borrow from these funds, now is the time to decide if it’s really worth it. If you think

you can possibly pay back the money at a later date, or live on smaller retirement

income, than by all means consider a withdrawal, but if not, you may be forced to let

you home go now in lieu of a more stable financial future.



Now’s the hard part. If you have relatives or friends who may be in apposition to bail

you out (or at least help), ask. They may say no, but then again they just may say yes

– this time.



Finding excess funds to stop a foreclosure isn’t always easy, but most people can find

some available cash, if they are willing to not only sacrifice, but change the way they

think and spend their money now and in the future.
Chapter Seven: Foreclosure Loopholes to Be Aware Of

Believe it or not, there are a number of loopholes that you can legally use to fend off

your foreclosure and maybe even get your entire mortgage debt cleared! When

searching for foreclosure loopholes, the first step is hiring an attorney with at least

five years of experience in foreclosure law to investigate any violations which may

have occurred within your mortgage and foreclosure process in accordance to the

Truth in Lending Act (TILA). This can be a complicated endeavor, especially when

it is looked at on both a state and federal level, so it must be handled by a professional

who knows the laws of your area well.



In addition to TILA violations, there are a few other ways to halt the foreclosure

process – either temporarily, or sometimes even permanently:



   Filing Chapter 13 Bankruptcy. Filing bankruptcy will automatically place a 30-

    day moratorium on any foreclosures proceedings. Since the foreclosure can not

    proceed until your bankruptcy hearing, you may have up to a 12-month stay,

    depending on how busy your county’s court system is and how long it takes for

    your case to be heard by a judge.

   Enlisting in the Active Military. It is illegal for any lender to foreclose on the

    home of any active duty military personnel. While maybe not the best option to

    pursue, enlisting for active duty in any of the armed forced will stop any

    foreclosure proceedings until you are released.
   File a Written Answer To Your Foreclosure Notice Through the Courts.

    Formerly answering your foreclosure notice through the court system takes time

    (anywhere from 1-6 months), giving you the time to find other alternatives.

   Challenge the Sheriff’s Appraisal. Many foreclosure sales have been halted

    when the homeowner legally contests the sheriff’s appraisal and requests the court

    for a new one. Since a new appraisal may take 30-60 days, and another month or

    more to have the house re-listed for auction, this stalling technique can fend off

    foreclosure for several months.

   Find Someone to Make an Offer on Your Home. If a buyer has been found for

    your home prior to the final foreclosure sale, the court is apt to pull it from the

    auction listing. Since many states do not require buyers who make a formal offer

    to actually complete the sale (since they can find many reasons to pull out from

    the deal without losing their $500 good faith deposit), finding a friend or relative

    to actually make an offer on your home prior to the auction may delay the

    proceedings for up to 6 months.

   Notice Failure. The law requires the bank to notify all parties listed on the

    mortgage of foreclosure proceedings via a certified letter to their home or office.

    Failure to do so can result in the complete invalidation of the entire foreclosure.

    That may be one reason why, in some cases, one person remains in the home and

    the other moves from place to place, trying to outrun the formal legal notice.
Chapter Eight: Common Foreclosure Myths

Since the foreclosure process can fraught with loads of “legalese,” that many people

have a difficult time understanding, there are a number of common myths that need

to be dispelled.

Myth # 1: The bank can kick me out of my house as soon as I fall behind in my

payments.

Fact: The truth is, you can be forced to leave your home until the property has been

sold at auction, the title, or deed, transferred and a formal eviction notice issued.

Once all of that has taken place, however, you may have as little as three days (or up

to six months) to vacate the premises.



Myth #2: Once my house is sold under foreclosure my debt is forgiven.

Fact: In most cases, your first mortgage debt is wiped clean (although it may still

appear negatively on your credit report for up to 7 years). However, in some rare

cases, you may still be responsible for any differences owed between the total amount

of your debt and the selling price. In addition, any debt you secured using your home

as collateral such as second mortgages and equity lines of credit are still your

responsibility, despite the foreclosure and still need to be paid.

Myth #3: It’s better to file bankruptcy than to have my home foreclosed on.

Fact: Not necessarily. Unless you are in such a financial bind that leaves you unable

to pay your other bills, bankruptcy can do much more damage (and for a longer

period of time), than foreclosure. A foreclosure will appear on your credit report for
7 years, while a bankruptcy will affect your ability to obtain credit for at least 10

years.



Myth #4: Now that I’m in foreclosure, no other bank will refinance my mortgage.

Fact: While it may be difficult to obtain a new mortgage, it is possible, if you have

enough equity in your home. Between 60-70% of foreclosures can (and do) refinance

with another bank for easier terms, lower interest and payments they can manage.



Myth #5: If I go through foreclosure, I’ll never own my own house again.

Fact: Rebuilding your credit can be difficult after a foreclosure, but it can be done.

Since a foreclosure is listed on your credit report for seven years, many people wait

until after that period to apply for a new home loan. But, that may not necessary.

Some banks will approve a more manageable loan within a year or two after a

foreclosure, but be prepared to make a big down payment and pay higher interest

rates on a shorter term loan.



Myth #6: When the bank forecloses on my house, they’ll also take all of my stuff.

Fact: The bank can only legally seize your property during foreclosure. They can

not take your personal belongings or furniture to pay back your mortgage debt. In

some cases, however, they can seize items within the house (that are part of house’s

decor), such as chandeliers, special lighting, sheds, above ground swimming pools,

swing sets, etc).
Myth #7: Once my house is sold at a foreclosure auction it is gone forever.

Fact: True in most cases, still some states offer a special “redemption period,” which

gives homeowners a few extra months following the sale of the property to pay the

debt in full (plus fees and interest), and retain ownership of the property. Be prepared

to pay the “lien holder” or highest auction bidder a hefty sum of interest (as outlined

in their purchaser’s agreement), for the privilege of keeping your home.



Myth #8: I need to do everything I can to save my house from foreclosure!

Fact: The truth is, is some cases, the best thing you can do for your financial future

is let the house be sold and free yourself from the overburdening debt in order to

begin rebuilding your financial life and move on. Consider the lessons that you’ve

learned (albeit the hard way), something that you can use to build a stronger financial

life for your family’s future.



Myth #9: Only deadbeats lose their home to foreclosure.

Fact: There are a lot of reasons why people find themselves in foreclosure: job loss;

illness; death; and even divorce. As many as 6-7% of all homeowner’s lose their

homes in the United States every year to foreclosure sales. That number is steadily

rising, thanks in large part to adjustable rate mortgages rates that have been readjusted

recently. While it is still considered undesirable, foreclosure is becoming more

commonplace every month.



Myth #10: I can’t stop foreclosure because the bank wants my house.
Fact: Banks are not in the real estate business. Foreclosure is expensive (costing the

average lender about $58,000), which cuts into their profits. Most lenders would

prefer to find a way to help you stay in your house and make your payments, thus

avoiding the hassle and expense of foreclosing
Chapter Nine: FAQ’s

Foreclosure can be a complicated procedure that leaves you with a lot of questions.

Here is a quick guide to 10 of the most commonly asked questions about foreclosure:



1. What Is Foreclosure?

Simply put, foreclosure is the process in which a lender sells a property that it has

seized for non-payment.

2. I just received a notice of foreclosure, what do I do now?

First, don’t panic! You may still have options (although they will be a lot more

limited now that the process has actually begun). The first thing you must do is call

your lender immediately. Do not ignore the notice! Next, do not rush to move out.

Once you leave the property, it will be considered abandoned and you may not have

any options available to keep your home. Finally, contact a HUD-approved

counseling center in your area for help. They are trained and qualified to get your

through the process as easily as possible (and they’re services are free). For a list of

offices near you, call 1-800-569-4287.

3. What happens once a foreclosure notice has been issued?

Once a foreclosure notice has been sent to the borrower, the bank appoints a legal

trustee to handle the court proceedings and sale. Once the trustee has filed all

necessary papers in accordance to the individual state regulations where the

foreclosure will occur, a notice of sale is posted on the property, as well as advertised

using whatever media the trustee chooses. Following the sale, an eviction notice will

be issued and the former homeowners are required to leave.
4. Can the bank just kick me out of my house?

No. At least not until the property has been sold and a formal eviction notice is

issued. If, however, you fail to vacate the property in accordance to the eviction

summons, the sheriff will remove you.

5. How long does foreclosure take?

Although it can vary slightly from state to state, depending on their own specific rules

governing the foreclosure process, it usually takes about 4 months until the property

is sold at auction from the date the initial foreclosure notice is issued by the lender.

6. One a foreclosure notice is issued; does that mean I have no chance to keep my

   home?

In some cases the answer is no, once the process begins, it must be completed. But,

more often than not, you may still have the opportunity to save your home from

foreclosure, if you act quickly. The first step is to contact your lender and see if they

are willing to work with you at this late stage.

7. Who pays all of the foreclosure fees?

Unless the borrower brings tier debt up-to-date or pays it off at the last minute (in

which case they are responsible for the debt), all of the fees associated with your

foreclosure will be the responsibility of the lender. However, most states allow the

lender to charge the winning auction bidder for the property most or all of the fees.

8. Can my house be sold for less than I owe?

Yes, it can. Although many auctions will start the bidding at the amount owed, the

law doesn’t require it. In some cases, you may even be responsible for paying the

difference, but most of the time that is not required. The lender’s goal in these cases
is to minimize their loss as much as possible, and they may be willing to take less

than the total debt amount in order to receive something.

9. What happens to the extra money if my house is sold for more than my mortgage

   debt?

Once the mortgage debt (and other liens on the property) have been satisfied, the

remainder of sales profit is given back to you. This is highly unusual though, and

most homeowners never see any additional profits from the sale.

10. Can I bid on my own house at auction?

Absolutely! Anyone with the cash on hand to make the purchase is more than

welcome to bid on any property up for sale – even the previous owners.
Chapter Ten: Where to Go For Help

You might feel all alone when you face foreclosure, but remember you’re not alone!

There are thousands of others just like you in the same situation right now. Now’s

not the time to hide away and try to deal with this important issue all alone. There are

dozens of government agencies and non-profit groups set up to help you maneuver

the foreclosure process and manage it in the best way you can. If you are like the 1.8

million others who may be facing foreclosure now, or in the near future, check out the

free and low-cost services below for help. Maybe they can’t save your home (yet

again maybe they can), but they sure can help make the entire process easier to bear.



The Department of Housing and Urban Development
www.hud.gov


Federal Housing Administration
www.fha.gov


The United States Department of Veterans Affairs
www.va.gov


Consumer Credit Counseling Services
www.cccsatl.org


AHC Services
www.acornhousing.org


By Design Housing Solutions
www.bydesignsolutions.org


Homeownership Counseling Services
www.vdco.org/couseling
HECM Resources
www.hecmresources.org



NeighborWorks America’s Center for Foreclosure Solutions
www.nw.org

The Homeowner’s Preservation Foundation
National hotline: 1-888-995-HOPE

Americans for Fairness in Lending
www.affil.org

Consumer Federation of America
www.consumerfed.org

Neighborhood Assistance Corporation of America
www.naca.com

ACORN Housing
www.acornhousing.org

Center for Responsible Lending
www.responsiblkelending.org

National Association of Consumer Advocates
www.naca.net

Homefree USA
www.homefreeusa.org

Freddie Mac
www.freddie,ac.com

The Federal Trade Commission
www.ftc.gov

Credit Counseling Centers of America
www.cccamercia.org

Federal Trade Commission
www.ftc.gov
Money Management International
www.moneymanagement.org

Fannie Mae
www.fanniemae.com
www.fanniemaefoundation.org
              STATE FORECLOSURE LAWS &

                              PROCEEDINGS



ALABAMA

In the state of Alabama, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption is permitted for 12 months

following the sale under state law. If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those

requirements must be followed. Otherwise, the non-judicial power of sale foreclosure

is carried out in the following manner:

1. the sale may not take place until 30 days after the last notice of sale is published

2. said notice must be printed in a local publication once a week for four consecutive

   weeks . If the property is mortgaged in more than one county, than the notice

   must be published in all counties involved and must include the time, place, terms

   of sale, and a description of the property being auctioned

3. the sale must take place on the steps of the courthouse of the county where the

   property is located
ALASKA

In the state of Alaska, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of

Judgment are both allowed under state regulations. If the original mortgage

documents contains a sales clause specifying how the foreclosure process will take

place, those requirements must be followed. Otherwise, the non-judicial power of

sale foreclosure is carried out in the following manner:



1. a trustee is appointed and records notice of payment default in the office of the

   recorder in the recording district where the property is located. This must be done

   within 30 days following the default and not less than three months before the

   scheduled sale.

2. Within ten days of officially recording the default, the trustee must notify the

   following persons in writing that foreclosure proceedings have begun:

                                      the borrower

                          any persons named on the mortgage

                          anyone holding a lien on the property

                                      all occupants



3. At any time prior to the sale, the borrower may halt the sale by paying all missing

   payments and fees. The reminder of the principal balance does not need to be

   paid in order to stop the foreclosure proceedings, unless the borrower has been in
     default at least three other times. In that case, Alaska law will allow the lender to

     refuse the borrower’s attempt at payment and proceed with the sale.

4. The sale must be held under the following conditions:

                      it must be held at the front door of a courthouse

                            of the superior court in the judicial

                           district where the property is located

     the trustee must sell to the highest approved bidder, even if that bidder is either

                                  the lender or the borrower



Foreclosure Timeline in Alaska: 90 days
ARIZONA

  In the state of Arizona, a lender may foreclose on a property using both judicial and

  non-judicial foreclosure means. The Right of Redemption is not permitted in

  Arizona, however, Deficiency of Judgment may be allowed under certain

  circumstances. If the original mortgage documents contains a sales clause specifying

  how the foreclosure process will take place, those requirements must be followed.

  Otherwise, the non-judicial power of sale foreclosure is carried out in the following

  manner:

  1. a trustee is assigned and must record a notice of sale in the office of the recorder

     of the county where the property is located.

  2. the trustee has five days after the notice is recorded, to notify (by mail) each

     person party to the trust.

  3. in order for the sale to proceed, the notice must appear in a newspaper in the

     county where the property is located once a week for four consecutive weeks,

     with the last notice being published not less than ten days prior to the date of the

     sale.

     Another option: the trustee can post the notice at least twenty days prior to the

     date of the sale, in some conspicuous place on the property to be sold and/or the

     courthouse in the county where the property will be sold and/or the place of

     business of the trustee in the county in which the property is located.

  4. The trustee or his agent must conduct the sale.

  5. The property must be sold to the highest bidder
6. Payment must be made in cash only, by 5 pm of the day after the sale, except in

   the case of the lender buying the property.



A note regarding Deficiency Suits: A lender may not bring a deficiency suit against

a person who lost a property that is less than 2.5 acres, unless the property was a

single one-family or a single two-family dwelling. However, in foreclosures against

other types of property, a deficiency suit is allowed, but is limited to the difference

between the balance owed and the fair market value of the property, and then only if

the suit is brought within ninety (90) days of the power of sale foreclosure.

Typical timeline of foreclosure in Arizona: 90 days
ARKANSAS

In the state of Arkansas, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of Judgment

are both allowed under state regulations. If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:

   1. Before any property can be sold at a foreclosure auction in the state of Arkansas,

       it must first be appraised. The property may not be sold for less than 2/3 of the

       appraised value. However, if the minimum bid is not met, it can be brought up

       for auction again within one year, with the highest bidder (no matter what the

       amount), winning the second auction.

   2. Following the appraisal, the trustee must record a notice of sale in the office of the

       recorder of the county where the property is located.

   3. The trustee must mail a copy of the default notice to the borrower thirty days of

       the recording of the notice by certified mail. A notice must also be mailed anyone

       who records a Request for Notice that specifically described the mortgagee

       including its recording information.

   4. The trustee must, within five days after the notice is recorded mail, by certified

       mail, a copy of the notice of sale to each of the people who are parties to the trust

       deed.

   5. The notice of default and intention to sell must appear in a newspaper in the

       county where the property is located once a week for four consecutive weeks,
     with the last notice being published not less than ten days prior to the date of the

     sale.

6. Said notice of default and intention to sell must contain the names of the parties to

     the mortgage or deed of trust, a legal description of the trust property and, if

     applicable, the street address of the property, the book and page numbers where

     the mortgage or deed of trust is recorded or the recorder's document number, the

     default for which foreclosure is made, the mortgagee's or trustee's intention to sell

     the trust property to satisfy the obligation, including, in conspicuous type, a

     warning as follows: "YOU MAY LOSE YOUR PROPERTY IF YOU DO NOT

     TAKE IMMEDIATE ACTION" and the time, date, and place of sale.

7. The trustee must allow any person, including the mortgagee (lender) to bid on the

     property.

8.   The high bidder must pay the price bid within ten days.

9. The lender may bid by canceling out what it is owed on the loan, including unpaid

     taxes, insurance, costs or sale and maintenance, but for cash for any higher price.

10. The trustee may postpone the sale by public proclamation at the time, place and

     date last appointed for sale, up to seven days past the original date, but if for a

     longer time, then the whole notice procedure must be performed a second time,

     including the sixty day wait.

11. The lender has the right to sue the borrower for a deficiency within twelve (12)

     months of a power of sale clause foreclosure for any of the following:


     the difference between the foreclosure sale price and the balance due on the loan

            the balance due on the loan minus the fair market value of the property
The foreclosure timeline in the state of Arkansas: 120 days
   CALIFORNIA


   In the state of California, a lender may foreclose on a property using both judicial and

   non-judicial foreclosure means.       The Right of Redemption and Deficiency of

   Judgment are both allowed under state regulations.            If the original mortgage

   documents contains a sales clause specifying how the foreclosure process will take

   place, those requirements must be followed. Otherwise, the non-judicial power of sale

   foreclosure is carried out in the following manner:


   1. A notice of sale must be recorded in the county where the property is located

       fourteen days prior to the sale

   2. A notice of sale must be mailed by certified return mail to the borrower at least 20

       days prior to the sale

   3. A notice of sale must be posted at the courthouse and on the property 20 days

       before the sale

   4. The borrower has until five days prior to the sale to stop it

   5. The sale may be held during regular business hours on any regular business day at

       any location posted in the notice.

   6. The property must be sold to the highest pre-approved bidder


Foreclosure timeline in the state of California: 120 days
COLORADO


In the state of Colorado, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of Judgment

are both allowed under state regulations. If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


   1. The attorney representing the lender must file the required documents with the

       Office of the Public Trustee of the county where the property is located.

   2. The Public Trustee must then file a "Notice of Election and Demand" with the

       county clerk and recorder of the county.

   3. Once recorded, the notice must be published in a newspaper of general circulation

       within the county where the property is located for a period of five consecutive

       weeks.

   4. The Public Trustee has ten days after the publication of the notice of election and

       demand for sale, a copy of the same and a notice of sale as published in the

       newspaper, to the borrower and any owner or claimant of record, at the address

       given in the recorded instrument.

   5. The Public Trustee must also notify the borrower by mail, at lease twenty-one

       days before the foreclosure sale, a notice describing how to redeem the property.
6. The owner of the property may stop the foreclosure proceedings by filing an

   "Intent to Cure" with the Public Trustee's office at least fifteen days prior to the

   foreclosure sale

7. The owner has until noon the day before the foreclosure sale to pay the necessary

   amount to bring the loan up-to-date

8. The foreclosure sale must take place between forty-five and sixty days after the

   recording of the election and demand for sale with the county clerk and recorder.

9. The sale must be held at any entrance to the courthouse, unless other provisions

   were made in the deed of trust.

10. The lender has the option to file a suit for deficiency in Colorado and the

   borrower has up to seventy five days after the sale to redeem the property by

   paying the foreclosure sale amount, plus interest.
CONNECTICUT


In the state of Connecticut, a lender may only foreclose on a property using the judicial

foreclosure process only. This is done in one of two ways:


Strict Foreclosure, allows the lender to obtain the title to the property without a sale.

This is done by petitioning the court. Once the lender has proven that the account is

indeed delinquent, the court may transfer the title. The homeowner is then given a set

amount of time to redeem the property by paying the mortgage balance in full. If he/she

fails to do so the title is transferred permanently to the lender, who then has 30 days to

record a certificate of foreclosure with the county.


Decree of Sale, allows the court to:


      establish a time and manner for the property to be sold

      appoint a committee to handle the sale

      appoint an appraiser to formerly appraise the property


The homeowner can at any time stop the sale of the property by paying the mortgage

balance in full.    Connecticut law also allows the lender to sue the borrower for a

deficiency judgment following the sale.


Foreclosure Timeline in Connecticut: 60 days
DELAWARE


  In the state of Delaware, a lender may foreclose on a property using the judicial

  foreclosure process only. State law does not allow The Right of Redemption or

  Deficiency of Judgment. There are, however, several options available for lenders to

  pursue in regards to Delaware Foreclosures, with the most common being the Scire

  Facias.



  In Scire Facias, it is the borrower’s responsibility to prove they aren’t in default,

  unlike other forms of foreclosure which put the burden of proof on the lender. This

  requires several steps:

  1. the lender must file an order of foreclosure with the court

  2. The borrower has 20 days after being served a writ to provide sufficient evidence

     to the court why the foreclosure should not take place

  3. Unless the court is satisfied with the borrower’s explanation, they will authorize a

     foreclosure sale

  4. All foreclosure sales must be conducted by the sheriff and held either at the

     courthouse or on the property itself within 14 days of notice posting at the

     property site and public places throughout the county.

  5. Once the court has confirmed the sale, the buyer has no right of redemption

  Foreclosure Timeline in Delaware: 90 days
FLORIDA


In the state of Florida, a lender may foreclose on a property using the judicial foreclosure

process only. State law does not allow The Right of Redemption and Deficiency of

Judgment.


In Florida, all mortgages are foreclosed in equity, which means the court severs, for

separate non-jury trial, all counterclaims against the foreclosing lender.

The court then orders the exact process in which the foreclosure will take place including

the time, place, bid requirements and advertising/notification. In the event legal

advertisement, publication, or notice relating to a foreclosure proceeding is required to be

placed in a newspaper, it is the lender’s responsibility to place the required

advertisement.


Equitable Right of Redemption ends at the foreclosure, with a period of 10 days after the

sale for "the court to review the sale to ensure a fair price has been paid." Once this

review period ends, the court transfers the title to the highest bidder and the sale is

complete. In the event the sale is not confirmed, another sale is scheduled.

Florida statute also allows the lender to sue for a deficiency judgment following the sale.


Foreclosure Timeline in Florida: 90 days
GEORGIA


In the state of Georgia, a lender may foreclose on a property using both judicial and non-

judicial foreclosure means. The Right of Redemption and Deficiency of Judgment are

both allowed under state regulations.     If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


   1. A foreclosure notice must be mailed by certified mail, return receipt requested to

       the borrower no later than 15 days prior to the date of the foreclosure sale, with

       the time period beginning on the day the letter is postmarked. The court does not

       acknowledge any waiver or release of the rights to notice , even if it was signed

       at the same time as the original documents.

   2. The notice must be published in a newspaper of general circulation in the county

       where the sale will be held once a week for four weeks prior to the sale date

   3. The sale must be held on the first Tuesday of the month between 10:00 am and

       4:00 p.m. at the courthouse.


Lenders are permitted to request a deficiency judgment in the state of Georgia.


Foreclosure Timeline in Georgia: 90 days
HAWAII


In the state of Hawaii, a lender may foreclose on a property using both judicial and non-

judicial foreclosure means. There is no Right of Redemption in Hawaii, however lenders

may file a Deficiency of Judgment under state foreclosure law. If the original mortgage

documents contains a sales clause specifying how the foreclosure process will take place,

those requirements must be followed. Otherwise, the non-judicial power of sale

foreclosure is carried out in the following manner:


   1. A notice of intent to foreclose must be published once a week for three successive

         weeks, with the final publication not less than fourteen days before the day of

         sale, in a newspaper having a general circulation in the county in which the

         mortgaged property is located.

   2. Copies of the notice must be mailed or delivered to the mortgagor, the borrower,

         any prior or junior creditors, the state director of taxation and any other person

         entitled to receive notice.

   3. The notice must be posted on the premises not less than twenty-one days before

         the sale and state:


                              The date, time, and place of the public sale

         The dates and times of the two (2) open houses of the mortgaged property, or if

                 there will not to be any open houses, the public notice shall say so

          The unpaid balance of the moneys owed to the mortgagee under the mortgage

                                               agreement
                 A detailed description of the mortgaged property, including the address or

                 description of the location of the mortgaged property, and the tax map key

                                     number of the mortgaged property

                               The name of the mortgagor and the borrower

                                          The name of the lender

          The name of any prior or junior creditors having a recorded lien on the mortgaged

                           property before the recordation of the notice of default

              The name, the address in the State, and the telephone number in the State of the

                                person in the State conducting the public sale

          The terms and conditions of the public sale.


   4. The borrow has until three days prior to the sale to cure the default and stop the

           sale by paying the lien debt, costs and reasonable attorney's fees, unless otherwise

           agreed to between the lender and the borrower.

   5. The sale may not be held any earlier than fourteen days after the last ad is

           published

   6. The highest bidder must be offered the property.


Foreclosure Timeline in Hawaii: 60 days
IDAHO


In the state of Idaho, a lender may foreclose on a property using both judicial and non-

judicial foreclosure means. The Right of Redemption and Deficiency of Judgment are

both allowed under state regulations.     If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


   1. A notice of sale must be recorded in the county where the property is located and

       given to the borrower and the occupants of the property at least one hundred

       twenty days prior to the scheduled sale date

   2. A notice must be published in the newspapers in the county where the property is

       located at least once a week for four consecutive weeks, with the final

       advertisement appearing no less than thirty days in advance of the foreclosure.

   3. All public notices must contain a legal description of the property, its street

       address and the name and phone number of someone who can give directions; a

       description of the default; the lender's name, the date, time, and place of the sale,

       and the name and phone number of the person conducting the sale.

   4. The foreclosure sale must take place on the date, at the time and at the place

       specified in the notice. However, the sale may be postponed and held at a new

       time and place, within thirty days of the original scheduled sale.
   5. In the event the property contains more than twenty acres, the buyer has a period

       of one year to redeem said property. If the property consist of less than 20 acres,

       the redemption period is lessoned to six


Foreclosure Timeline in Idaho: 150 days
ILLINOIS


In the state of Illinois, a lender may foreclose on a property using the judicial foreclosure

process only. The Right of Redemption is not permitted by state statue, but Deficiency of

Judgment is allowed under Illinois law.        Illinois foreclosure law allows the following

methods of foreclosure and sale:


Judicial Foreclosure

A notice of the lenders intent to foreclose must be given within 30 days to the borrower

and all other legal entities involved with the foreclosure.

If the court finds in favor of the lender and issues a notice of sale, the sale will be

conducted on the terms and conditions specified in the notice of sale, provided they meet

the minimum state standards.


The sheriff or any judge within the county where the property is located may conduct the

sale. The borrower has no rights of redemption after the foreclosure sale.



Deed in Lieu of Foreclosure

If the borrower has defaulted on the mortgage and the lender agrees, the borrower may

simply transfer the deed to the lender. Under this option, the lender may not seek a

deficiency judgment against the borrower.



Consent Foreclosure

In Consent Foreclosure, the court gives absolute title to the property to the lender in lieu

of future mortgage payments. The borrower has no rights of redemption after this type of
foreclosure judgment has been rendered and the lender may not file for a deficiency

judgment.




Foreclosure Timeline in Illinois: 210 days
INDIANA


In the state of Indians, a lender may foreclose on a property using the judicial

foreclosure process only. The Right of Redemption and Deficiency of Judgment are both

allowed under state regulations.    If the original mortgage documents contains a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. The lender must file a lawsuit with the court obtaining an order of foreclosure

   2. In Indiana, the date the mortgage was signed determines the length of time a

       lender must wait between filing the suit and proceeding with the foreclosure sale.

       The wait time is anywhere from 3-12 months, but the owner may file a waiver of

       the time limit, which allows the sale to proceed without delay. When this occurs,

       the lender loses the right to pursue a deficiency judgment.

   3. In order for the sale to proceed, the lender must place an ad in a local newspaper

       once a week for three weeks. The first ad must be run 30 days before the sale.

   4. At the time the first ad is published the sheriff must notify each owner of the sale

   5. On the day of the sale, the sheriff must convey the title to the highest bidder


Foreclosure Timeline in Indians: 150 days
IOWA


In the state of Iowa, a lender may foreclose on a property using the judicial foreclosure

process only. Neither the Right of Redemption nor Deficiency of Judgment is permitted

under state regulations.     If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A decree of sale must be issued form a court having jurisdiction in the county

        where the property is located before foreclosure proceedings can begin.

   2. Once default has been established, the court gives the borrower a set period of

        time to make restitution before ordering the sale of the property.

   3. Notice of the sale must be posted in at least three public places (one being the

        courthouse), of the county where the property is located

   4. A notice of sale must be published in two weekly publications within the county

        with the first publication being at least four weeks before the date of sale, and the

        second at a later time before the date of sale.

   5. If the borrower is still residing on the property, they must be notified of the sale at

        least 20 days prior to the sale date.

   6. The sale must be at public auction, between 9:00 am and 4:00 pm (with the time

        clearly stated on the ales notice)

   7.   The sheriff may receive sealed written bids prior to the public auction.
8. The sheriff may require all sealed written bids to be accompanied by payment of

    any fees required to be paid at the public auction by the purchaser

9. Al written bids must remain seals until the

10. All sealed written bids must be opened and read at the time of the auction

11. The sale may be postponed, but if it postponed for more than three days, notice of

    the new sale must be publicly announced at the time the sale was to have been

    made.

    Alternative non-judicial foreclosure procedure

    Borrowers in Iowa may avoid a foreclosure sale by voluntarily transferring all of

    their rights in the property secured by the mortgage to the lender. If the lender

    accepts the conveyance from the borrower, they are given immediate access to the

    property. However, no deficiency judgment against the borrower may be issued at

    a later date. Under conveyance the following must be filed:


   a signed "disclosure of notice and cancellation", by the borrowing stating their

    intent to voluntarily give up their rights to reclaim or occupy the property.

   a jointly executed document with the county recorders office stating that both the

    borrower and the lender have chosen to proceed with the foreclosure using the

    voluntary foreclosure procedures.


Foreclosure Timeline in Iowa: 150 days
KANSAS


In the state of Kansas, a lender may foreclose on a property using the judicial foreclosure

process only. The Right of Redemption and Deficiency of Judgment are both allowed

under state regulations.   If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. The lender must begin the foreclosure process by filing a lawsuit in order to

       obtain an order of foreclosure

   2. After the court authorizes the sale, a notice clearly stating the time of the sale

       must be advertised once a week for three consecutive weeks, with the last

       publication being no more than fourteen and no less than seven days before the

       scheduled date of sale, in a newspaper located within the same county as the

       property.

   3. The borrower must be notified of the sale five days of the first advertisement.

   4. Unless other arrangements are made by the court, all sales are held at the

       courthouse of the county in which the property resides.

   5. The sale is by public auction to the highest bidder, who will receive a certificate

       of purchase.

   6. Following confirmation of the sale, the winning bidder will receive a sheriff's

       deed, which will vest good and perfect title to the foreclosure bidder, once the
   borrower’s right of redemption has expired. The borrower typically has twelve

   months from the date of the foreclosure sale to redeem the property.

7. Lenders may sue to obtain a deficiency judgment for the difference between the

   foreclosure sale price and the amount due on the original mortgage after the sale

   is complete


Foreclosure Timeline in Kansas: 120 days
KENTUCKY


In the state of Kentucky, a lender may foreclose on a property using the judicial

foreclosure process only. The Right of Redemption and Deficiency of Judgment are both

allowed under state regulations, with restrictions.   If the original mortgage documents

contains a sales clause specifying how the foreclosure process will take place, those

requirements must be followed. Otherwise, the non-judicial power of sale foreclosure is

carried out in the following manner:


   1. A court decrees the amount of the borrowers debt and gives him or her a short

       time to pay.

   2. If the borrower fails to pay the mortgage debt within the allotted time period, the

       clerk of the court is then authorized to advertise the sale of the property

   3. An appraisal is then scheduled,

   4. If the foreclosure sale price is less than two-thirds of the appraised value, the

       borrower is granted 12 months to redeem the property by paying the amount for

       which the property was sold, plus interest.

   5. The lender may obtain a deficiency judgment against the borrower for the

       difference between the amount the borrower owed on the original loan and the

       foreclosure sale price, but only if the borrower was personally served with the

       lawsuit, or failed to answer.


Foreclosure Timeline in Kentucky: varies
LOUISIANNA


In the state of Louisiana, a lender may foreclose on a property using the judicial

foreclosure process only. The Right of Redemption is not permitted, but Deficiency of

Judgment is allowed under state regulations, with restrictions.


The state of Louisiana allows an executory process to take place when the borrower signs

a mortgage featuring an "authentic act that imparts a confession of judgment,” making

foreclosure easier for the lender.




Once a foreclosure order is issued by the court, the borrower must be served with a

demand for payment. The borrower has three days to provide all delinquent payments, or

the court will order a writ of seizure and sale and the property will be sold after the sale

has been advertised for thirty days.


Foreclosure Timeline in Louisiana : 60 days
MAINE


In the state of Maine, a lender may foreclose on a property using the judicial and strict

foreclosure processes only. The Right of Redemption and Deficiency of Judgment are

both allowed under state regulations, with restrictions. Strict Foreclosure is the primary

method of foreclosure in Maine.




In Maine, the lender is believed to own the property until the mortgage has been paid in

full. When a borrower fails to live up to the conditions established in the mortgage prior

to the time the loan is paid in full, he or she will lose all rights to the property, giving the

lender the right to seize and sell the property.


In either case, the borrower has either a three (3) month (post-1975 mortgages) or a

twelve (12) month (pre-1975 mortgages) redemption period. If the lender has taken

possession of the property, they must hold possession of it for the entire redemption

period to finalize the foreclosure.


Foreclosure Timeline in Maine: 90 days
MARYLAND


In the state of Maryland, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption is not permitted in Maryland,

but Deficiency of Judgment is allowed under state regulations. If the original mortgage

documents contains a sales clause specifying how the foreclosure process will take place,

those requirements must be followed. Otherwise, the non-judicial power of sale

foreclosure is carried out in the following manner:


Judicial Foreclosure

1. The lender must file a complaint against the borrower and obtain a decree of sale from

a court having jurisdiction in the county where the property is located before foreclosure

proceedings can begin.

2. If the court finds that the borrower has indeed defaulted on the loan, it will either:

* fix the amount of the debt, interest, and costs due

* provide a reasonable time within which payment may be made.

* or order the property sold to satisfy the debt.



Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a

mortgage or deed of trust giving the lender the right to sell the property in the event of

default.   Despite this authorization, the lender must still file an order to docket before

foreclosure proceedings can begin. However, it is not necessary for a hearing to be held

prior to the foreclosure sale.
All foreclosure proceedings within the state of Maryland must follow the following

procedures, regardless of which type of foreclosure is sued:


           1. A notice of sale must be published in a newspaper of general circulation in

               the county where the property resides at least once a week for three (3)

               successive weeks, with the first publication to be not less than fifteen (15)

               days prior to sale and the last publication to be not more than one week

               prior to sale.

           2. A notice of sale must also be sent by certified and by registered mail,

               between 10-30 days of the date of the sale, to the borrower at their last

               known address.

           3. The sale must be conducted by the person authorized to make the sale (i.e.

               trustee, sheriff) and may take place immediately outside the courthouse

               entrance, on the property itself or the location advertised in the notice of

               sale, if different.

           4. If the sale is postponed, notice of the new date of sale shall be published in

               the manner the original notice of sale was given.

           5. A complete report of the sale must be filed within 30 days of the sale. The

               clerk of the court will then issue a notice containing a brief description to

               identify the property and stating that the sale will be ratified unless cause

               to the contrary is shown within 30 days after the date of the notice.

           6. A copy of the clerk’s notice will then be published at least once a week in

               each of three successive weeks before the expiration of the 30-day period
   in one or more newspapers of general circulation in the county in which

   the report of sale was filed.

7. Lenders have a period of three (3) years to file for a deficiency judgment,

   but it is limited to the balance of the loan in default after the foreclosure

   sale proceeds have been applied.


Foreclosure Timeline in Maryland: 90 days
MASSACHUESTETTS


In the state of Massachusetts, a lender may foreclose on a property using both judicial

and non-judicial foreclosure means.         The Right of Redemption is not permitted in

Massachusetts, but Deficiency of Judgment is allowed under state regulations.         If the

original mortgage documents contains a sales clause specifying how the foreclosure

process will take place, those requirements must be followed. Otherwise, the non-judicial

power of sale foreclosure is carried out in the following manner:


After the borrower defaults on the mortgage, the lender may recover possession of the

property by:

1) obtaining a court order

2) entering the property peaceably

3) by proper consent of the buyer. If the lender maintains possession peaceably for three

years from the date of possession, the borrower loses all rights of redemption.



When the property is to be sold, the following rules and regulations apply:

1. A notice of sale must be recorded in the county where the property is located.

2. The notice of sale must be sent, by registered mail, to the borrower at his last known

address at least fourteen days prior to the foreclosure sale

3. The notice of sale must be published in a newspaper of general circulation within the

county the property resides, once a week for three weeks, with the first publication being

at least twenty one days before the sale.
4. The notice must contain the place, time and date of the foreclosure hearing, the date

the mortgage was recorded, the borrower’s name, the amount of the default and the terms

of the sale.

5. The sale must be conducted at public auction on the date, time and place specified in

the notice of sale.

6. The property must be sold to the highest bidder.


Foreclosure Timeline for Massachusetts: 90 days
MICHIGAN


In the state of Michigan, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of Judgment

are both allowed under state regulations. If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


   1. A notice of sale must be published once a week for four consecutive weeks in a

       newspaper of general circulation in the county where the property is located.

   2. The notice must be posted on the property at least fifteen days after the first notice

       of sale is published.

   3. The notice must contain the borrower and lenders name, a description of the

       property, the terms of the sale and the time, place and date of the sale.

   4. The sale must be made at public auction to the highest bidder.

   5. The sale must be conducted by a court-appointed trustee or the sheriff of the

       county, between the hours of 9:00 am and 4:00 pm on the date specified in the

       notice of sale.

   6. The sale may be postponed by posting a notice at the time and place where the

       sale was to originally be held. If the postponement is for more than one week, it

       must also be published in the manner as the original notice of sale was given.


   Foreclosure Timeline in Michigan: 60 days
MINNESOTA


In the state of Minnesota, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of Judgment

are both allowed under state regulations. If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


If the deed of trust or mortgage contains a power of sale clause and specifies the time,

place and terms of sale, then the specified procedure must be followed. However, in

Minnesota, a non-judicial foreclosure may only occur if:

1) no lawsuit to collect the on the mortgage is already underway

2) the mortgage and any assignments of the mortgage to new lenders have been recorded

3) a notice has been given eight weeks before the foreclosure on a homestead.



If all of these conditions have been met, then the foreclosure may proceed as follows:


   1. A notice of sale, containing the borrower and lender(s) name, the original loan

       amount and current amount of default, the date of the mortgage, a description of

       the property and the time, place and date of the foreclosure sale, must be recorded

       in the county where the property resides.

   2. The sale must be conducted by the county sheriff on the date specified in the

       notice of sale.
3. At some point during the sale, the sheriff must read an itemized statement, which

   has been filed by the lender, of the amount due at the time of the sale.

4. The property must be sold to the highest bidder

5. Lenders may pursue a deficiency judgment, but it is limited to the amount of the

   fair marker value of the property and the unpaid balance of the original loan.

6. Borrowers have 12 months to redeem the property by paying the past due amount

   on the loan.


Foreclosure Timeline in Minnesota: 60 days
MISSISSIPPI


In the state of Mississippi, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of Judgment

are not allowed under state regulations. If the original mortgage documents contains a

sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


   1. The trustee must record a notice of sale containing, the borrowers name and the

       date, time and place of the sale in the county where the property is located.

   2. The notice of sale must be posted at the courthouse door in the county where the

       property is located

   3. The notice must be printed in a newspaper of general circulation in said county

       for a period of three consecutive weeks before the schedule date of the sale.

   4. The borrower may cure the default and stop the foreclosure process at any time

       before the foreclosure sale by paying the delinquent payments, plus costs and

       fees.

   5. The sale must be made at public auction for cash to the highest bidder.

   6. The sale may be held in the county where the property is located, or, if different,

       in the county where the borrower resides.


   Foreclosure Timeline in Mississippi: 60 days
MISSOURI


In the state of Missouri a lender may foreclose on a property using both judicial and non-

judicial foreclosure means. The Right of Redemption is allowed under state law, but not

Deficiency of Judgment.         If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. The borrower must be notified via certified mail at least twenty days

                prior to the scheduled day of sale.

           2. The notice of sale must also be published in a newspaper within the

                county.

           3.   The sale is conducted by the trustee at public auction for cash to the

                highest bidder. Anyone may bid, including the lender.

           4.   If the lender is the winning bidder, the borrower has 12 months to redeem

                the property.
MONTANA


In the state of Montana, a lender may foreclose on a property using both judicial and non-

judicial foreclosure means. The Right of Redemption is not allowed under state law,

Deficiency of Judgment is. If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. A notice of sale must be recorded in the county where the property is

              located

           2. a copy of the notice of sale must be mailed, by registered or certified

              mail, to the borrower at his last known address at least 120 days before the

              foreclosure sale

           3. the notice must be published once a week for three successive weeks in a

              newspaper of general circulation in the county where the property is

              located

           4. a notice must be posted on the property at least twenty days before the

              foreclosure sale.

           5. The notice must contain the time, date and place of sale, the borrowers,

              lenders and trustees name, a description of both the property and the

              default, and the book and page where the deed is recorded.

           6. The trustee must conduct the sale between the hours of 9:00 am and 4:00

              pm at the courthouse in the county where the property is located.
          7.   The property must be sold at public auction to the highest bidder.


Foreclosure Timeline for Montana: 150 days
NEBRASKA


In the state of Nebraska, a lender may foreclose on a property using only judicial

foreclosure means. The Right of Redemption is allowed under state law, but Deficiency

of Judgment is not.       If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:




   1. The court decrees the amount of the borrower’s debt and gives him or her a short

       time to pay it.

   2. If the borrower fails to pay within that time, the clerk of the court then advertises

       the property for sale. (In Nebraska, the court may order the entire property to be

       sold, or just some part of it).

   3. The order of sale may be delayed for up to nine months after the judgment if the

       borrower files a written request for a delay with the clerk of the court within

       twenty (20) days after the judgment is rendered. Otherwise, the order

       commanding the sale of the mortgaged property will be given twenty days after

       the judgment.

   4. The borrower has the right to cure the default at any time while the suit is still

       pending by paying the delinquent amount owed on the mortgage, as well as any

       interest and costs that have accrued. However, the court may still enter a decree of
    foreclosure and sale, which may be enforced if the buyer goes into default on the

    mortgage again in the future.

5. The sheriff must give public notice of the time and place of the sale by:


   posting the notice on the courthouse door

   posting the notice in at least five other public places in the county where the

    property is located

   advertising the property for sale once a week for a period of four weeks in a

    newspaper published in the county where the property is located.


6. The court must confirm the sale after it takes place and once this is occurs, the

    borrower has no right of redemption.


Foreclosure Timeline in Nebraska : 180 days
NEVADA


In the state of Nevada, a lender may foreclose on a property using both judicial and non-

judicial foreclosure means. The Right of Redemption is not allowed under state law,

Deficiency of Judgment is.   If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. A copy of the notice of default and election to sell must be mailed

              certified, return receipt requested, to the borrower, at their last known

              address, on the date the notice is recorded in the county where the property

              is located. Any additional postings and advertisements must be done in the

              same manner as for an execution sale in Nevada.

           2. Beginning on the day after the notice of default and election was recorded

              with the county and mailed to the borrower, the borrower has anywhere

              from fifteen to thirty five days to cure the default by paying the

              delinquent amount on the loan. The actual amount of time given is

              dependent on the date of the original deed of trust.

           3. The owner of the property may stop the foreclosure proceedings at least

              fifteen days before the sale by filing an ”Intent to Cure" with the Public

              Trustee's office, and paying the necessary amount to bring the loan current

              by noon the day before the foreclosure sale is scheduled.
4. The foreclosure sale itself will be held at the place, the time and on the

   date stated in the notice of default and election and must be conducted in

   the same manner as for an execution sale of real property.

5. The lender has three months after the sale to try and obtain a deficiency

   judgment. Borrowers have no rights of redemption.


Foreclosure Timeline in Nevada: 120 days
NEW HAMPSHIRE


In the state of New Hampshire, a lender may foreclose on a property using both judicial

and non-judicial foreclosure means. The Right of Redemption is not allowed under state

law, Deficiency of Judgment is.      If the original mortgage documents contains a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A notice of sale must be recorded in the county where the property is located

   2. A notice of sale must be mailed to the borrower at least twenty-five days before

       the sale

   3. a notice of sale must be published once a week for three weeks, with the first

       publication appearing not less than twenty days before the sale, in a newspaper of

       general circulation in the county where the property is located.

   4. The notice should contain the time, date and place of sale, a description of the

       property and the default, as well as a "warning" to the borrower, informing him

       the property is going to be sold and what rights he has to stop the procedure.

   5. The foreclosure sale must be held on the property itself, unless the power of sale

       clause specifies a different location.


Special Methods of Foreclosure


   1. Entry under Process - The lender may foreclose by entering the property under

       process of law and maintaining actual possession of the property for one year.
   2. Entry and Publication - By peaceable entry onto the property and continued,

       actual, peaceable possession for a period of one year

   3. Possession and Publication - By the lender in possession of the property

       publishing a notice stating that from and after a certain day, the property will be

       held for default of the mortgage and the borrowers rights to the property will be

       foreclosed. Said notice must be published in a newspaper printed in the county

       where the property is located for three (3) successive weeks and must give the

       borrower and lenders name, the date of the mortgage, a description of the property

       and the lenders intention to hold possession of the property for at least one (1)

       year.


Borrowers have no rights of redemption when any of the three special methods of

foreclosure are used.


Foreclosure Timeline for New Hampshire: 60 days
NEW JERSEY


In the state of New Jersey, a lender may foreclose on a property using both judicial and

non-judicial foreclosure means. The Right of Redemption and Deficiency of Judgment

are both permitted under state law. If the original mortgage documents contains a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. The court decrees the amount of the borrower’s debt and gives him or her short

        time to pay.

   2.   If the borrower fails to pay within that time, the clerk of the court then advertises

        the property for sale.

   3. A foreclosure notice must be posted in the county office of the county where the

        property is located

   4. A notice of foreclosure must be posted on the property being sold

   5. A notice of sale must be published in two separate newspapers in the county.

   6. The lender must notify the borrower at least ten days prior to the foreclosure sale.

   7. It is possible for the lender to obtain a deficiency judgment and borrowers have a

        right to redemption and/or objection within ten (10) days after the sale.


   Foreclosure Timeline for New Jersey: 90 days
NEW MEXICO


In the state of New Mexico, a lender may foreclose on a property using judicial

foreclosure only.     The Right of Redemption and Deficiency of Judgment are both

permitted under state law. If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. The court decrees the amount of the borrower’s debt and gives him or her a short

       time to pay.

   2. If the borrower fails to pay within that time, the court then issues a notice of sale.

   3. A notice of sale containing a legal description of the property and state the place,

       the time and the date, must be posted within thirty of the issuance of the notice of

       sale

   4. The property will then be sold to the highest bidder on the date specified in the

       notice.

   5. In most cases, the borrower has up to nine months to redeem the property by

       paying the amount of the highest bid at the foreclosure sale, plus costs and

       interest.

   6. Non-judicial foreclosure is only available for commercial and business properties

       valued at over $500,000.


   Foreclosure Timeline for New Mexico: 120 days
NEW YORK


In the state of New York, a lender may foreclose on a property using both judicial and

non-judicial foreclosure processes.    The Right of Redemption is not permitted, but

Deficiency of Judgment is allowed under state law. If the original mortgage documents

contains a sales clause specifying how the foreclosure process will take place, those

requirements must be followed. Otherwise, the non-judicial power of sale foreclosure is

carried out in the following manner:


   1. The lender must file a complaint against the borrower and obtain a decree of sale

       from a court having jurisdiction in the county where the property is located

   2. If the court finds the borrower in default, they will give them a set period of time

       to pay the delinquent amount, plus costs.

   3. If the borrower does not pay within the set period of time, the court will then

       order the property to be sold by the sheriff of the county or a referee.

   4. Typically the foreclosure sale is advertised for 4 to 6 weeks.

   5. The sale is made by public auction to the highest bidder. Anyone may bid,

       including the lender.

   6. After the property has been sold, the officer conducting the sale must execute a

       deed to the purchaser. The officer must also pay, out of the proceeds, the amount

       of the debt, including interest and costs, to the lender and then obtain a receipt for

       the payment from the lender.

   7. Within thirty days the officer must file a report of sale, which must include the

       receipt from the lender, with the clerk of the court. Unless otherwise ordered by
the court, the sale can't be confirmed until three months past the filing of the

report of sale.

Foreclosure Timeline in new York: 120 days
NORTH CAROLINA


In the state of North Carolina, a lender may foreclose on a property using both judicial

and non-judicial foreclosure processes. The Right of Redemption and Deficiency of

Judgment are both allowed under state law. If the original mortgage documents contains

a sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


1. After the preliminary notices have been issued, the clerk of the court will conduct a

hearing to determine whether or not a foreclosure sale may take place. If and when the

clerk issues a notice of sale, the foreclosure may proceed as follows:


           1. A notice of sale must be mailed first class mail to the borrower at least

               twenty days before the sale

           2. A notice must be published in a newspaper of general circulation in the

               county where the property is located once a week for two successive

               weeks, with the last ad being published not less than ten days before the

               sale

           3. The notice must be posted on the courthouse door for twenty days prior to

               the foreclosure sale.

           4. Said notice must name the borrowers, the lenders, provide a description of

               the property and state the date, time and place of sale.

           5. The sale must be conducted at the courthouse in the county where the

               property is located between the hours of 10:00 am and 4:00 pm.
          6. The property must be sold to the highest bidder. Upset bids may be filed

              with the court clerk for a period of ten days after the foreclosure sale.

          7. The sale may be postponed by announcing the need to postpone at the

              time and place the regular sale would have taken place. A notice of the

              postponement, stating the new date and time the foreclosure sale will be

              held, must be posted on the courthouse door.


Foreclosure Timeline in North Carolina: 60 days
NORTH DAKOTA


In the state of North Dakota, a lender may foreclose on a property using judicial

foreclosure means only. The Right of Redemption and Deficiency of Judgment are both

allowed under state law. If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. The court decrees the amount of the borrower’s debt and gives him or her a short

       time to pay. If the borrower fails to pay within that time, the clerk of the court

       then advertises the property for sale. However, in North Dakota, the lender must

       give the borrower no less than thirty days advance notice of their intent to

       foreclose. This notice must be sent registered or certified mail no later than

       ninety days before the suit is filed and must contain:


      a description of the real estate

      the date and amount of the mortgage

      the individual amounts due for principal, interest and taxes paid by the lender

      a statement that a lawsuit will be filed to foreclose if the amount is not paid within

       thirty days from the date the notice was mailed.


   2. The borrower may stop the foreclosure process by paying the delinquent amount,

       plus foreclosure costs, prior to the time the sale is confirmed by the court.
3. All sales in North Dakota must be made by the sheriff or his deputy of the county

   and in the county where the property is located.

4. The property will be sold to the highest bidder, who will be issued a certificate of

   sale until the borrowers redemption period has ended.

5. Borrowers typically have a period of one year to redeem the property by paying

   the balance due on the loan, plus costs, but it may be only six months if the

   mortgage includes short-term redemption rights.

6. It is possible to obtain a deficiency judgment against the borrower in North

   Dakota.


Foreclosure Timeline in North Dakota: 90 days
OHIO


In the state of Ohio, a lender may foreclose on a property using judicial foreclosure

means only. The Right of Redemption and Deficiency of Judgment are both allowed

under state law. If the original mortgage documents contains a sales clause specifying

how the foreclosure process will take place, those requirements must be followed.

Otherwise, the non-judicial power of sale foreclosure is carried out in the following

manner:


   1. The court decrees the amount of the borrowers debt and gives him or her a short

       time to pay. If the borrower fails to pay within that time, the clerk of the court

       then advertises the property for sale.

   2. An appraisal is scheduled for the by three disinterested freeholders of the county.

   3. A copy of the appraised value must be filed with the court clerk and the property

       must be offered for sale at a price of not less than two-thirds of said value.

   4. The sale may not take place until the notice of sale has been published once a

       week for three consecutive weeks in a newspaper of general circulation in the

       county in which the property is located.

   5. The sheriff will conduct the sale at the courthouse and the property will be sold to

       the highest bidder.

   6. The lender may obtain a deficiency judgment and the borrower may redeem the

       property at any time before the court confirms the foreclosure sale by paying the

       amount of the judgment, plus costs and interest.


   Foreclosure Timeline in Ohio: 150 days
OKLAHOMA


In the state of Oklahoma, a lender may foreclose on a property using judicial foreclosure

means only. The Right of Redemption and Deficiency of Judgment are both allowed

under state law. If the original mortgage documents contains a sales clause specifying

how the foreclosure process will take place, those requirements must be followed.

Otherwise, the non-judicial power of sale foreclosure is carried out in the following

manner:


           1. A written notice of intention to foreclose by power of sale must be sent by

              certified mail to the borrower at the borrower's last known address. The

              notice must describe the defaults of the borrower under the loan, and give

              the borrower thirty five days from the date the notice is sent to cure the

              problem. However, if there have been three defaults, then the lender need

              not send another notice of intent to foreclose, and if the borrower has been

              in default four times in the past twenty four months, and has been notified

              as above, then no further notice will be required.

           2. The notice must be recorded in the county where the property is located

              within ten days after the borrower has gone through the thirty five day

              notice

           3. The notice must appear in a newspaper in the county where the property is

              located once a day for four consecutive weeks, with the first publishing

              being not less than thirty days before the sale.
           4. The notice of sale must contain the names of the borrower and lender,

              describe the property (including the street address) and state the time and

              place of sale.


   The property must be sold at public auction to the highest bidder at the time and on

   the date specified in the notice. If the highest bidder at the sale is anyone other than

   the borrower, they must post cash or certified funds equal to ten percent of the bid

   amount.


   Foreclosure Timeline in Oklahoma: 150 days




   OREGON


In the state of Oregon, a lender may foreclose on a property using both judicial and non-

judicial foreclosure means     The Right of Redemption and Deficiency of Judgment are

both allowed under state law. If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. A notice of default must be recorded in the county where the property is

              located

           2. The borrower and/or occupant of the property must be served with a copy

              of the notice at least 120 days before the scheduled foreclosure sale date.
3. A copy of the notice must be published once a week for four successive

   weeks, with the last notice being published at least twenty) days prior to

   the sale

4. The notice must contain a property description, recording information on

   the trust deed, a description of the default, the sum owing on the loan, the

   lender's election to sell and the date, time and place of sale.

5. The borrower may cure the default at any time prior to foreclosure by

   paying all past due amounts, plus costs.

6. The sale must be at auction to the highest bidder for cash. Any person,

   except the trustee, may bid at the sale

7. The sale must take place between 9:00 am and 4:00 pm at the location

   stated in the notice of record.

8. The sale may be postponed for up to 180 days from the original sale date

   if at least twenty days advance notice is given, by mail, to the original

   recipients of the notice.

9. A deficiency judgment cannot be obtained through a non-judicial

   foreclosure, but may be pursued when other foreclosure methods are used.


Foreclosure Timeline in Oregon: 180 days




PENNSYLAVNIA
In the state of Pennsylvania, a lender may foreclose on a property using judicial

foreclosure only.   The Right of Redemption is not permitted by state statute, however,

Deficiency of Judgment is permitted. If the original mortgage documents contains a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A notice of intent must be sent, by first class mail, to the borrower, at their last

       known address and if different, to the property secured by the mortgage. The

       notice should not be sent until the borrower is at least sixty days behind in their

       mortgage payments.

   2. In the notice, the lender must make the borrower aware that his or her mortgage is

       in default and that it is the intent of the lender to foreclose if the borrower does

       not cure the default within thirty days. This means that the remaining balance of

       the original mortgage will come due immediately.

   3. If the borrower does not cure the default by paying the past due amount, plus any

       late charges that have accrued, within the thirty day grace period,, the lender may

       then file a suit to try and obtain a court order to foreclose on the property.

   4. If the court finds in favor of the lender and issues an order of sale, the property

       will be sold at a Sheriff's sale under the guidelines established by the court. The

       borrower has the right to cure the default and prevent the sale at any time up to

       one hour before the Sheriff's foreclosure sale.
5. Lenders have up to six months after the foreclosure sale to file for a deficiency

   judgment. Borrowers have no rights of redemption once the foreclosure sale is

   complete.


Foreclosure Timeline in Pennsylvania: 90 days
RHODE ISLAND


In the state of Rhode Island, a lender may foreclose on a property using both the judicial

and non-judicial foreclosures processes. The Right of Redemption and Deficiency of

Judgment are both permitted. If the original mortgage documents contains a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. The lender must mail a written notice of the time and place of sale, by

               certified mail, return receipt requested, to the borrower at least twenty

               days prior to the first publication, including the day of mailing in the

               computation.

           2. The lender must give notice of the sale by publication in some public

               newspaper at least once a week for three successive weeks before the sale,

               with the first publication of the notice being at least twenty-one days

               before the day of sale, including the day of the first publication in the

               computation.

           3. The notice must contain the names of the borrower and lender, the

               mortgage date, the amount due, a description of the premises and the time

               and place of sale.

           4. Any person may bid at the sale, including the lender.


Foreclosure Time line in Rhode Island: 60 days
SOUTH CAROLINA

In the state of South Carolina, a lender may foreclose on a property using judicial

foreclosure means only. The Right of Redemption is not permitted by state statute, but

Deficiency of Judgment is permitted. If the original mortgage documents contain a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A notice of sale, containing a description of the property, the time and place of

        sale, the borrowers name and the lenders name, must be published at the

        courthouse door and two other public places at least three weeks prior to the date

        of sale.

   2. The notice must be published in a newspaper of general circulation within the

        county where the property resides for the same time period.

   3. Unless otherwise ordered by the court, the sale must be conducted at the

        courthouse where the property is located by the sheriff of said county.

   4. The sale must be held on the first Monday in each month, unless it is a holiday

        and then the sale may take place on the following Tuesday.

   5.   The sale may begin at 11:00 am and go until 5:00 pm, but the sheriff may close

        the bidding prior to that time.

   6. Despite the fact that the bidding at the public sale has ended, in South Carolina,

        the auction actually stays open for a full thirty days after the date of the public

        sale. During this thirty day time period, anyone may place a bid higher than the
        last bid amount and the successful purchaser will be the one with the highest bid

        at the end of the thirty days. This is called upset bidding.

   7.   If no objection to the sale price of the property has been filed with the sheriff's

        office within three months after the date of sale, the sale will be considered

        confirmed and the sheriff will make any necessary deed endorsements.


Foreclosure Timeline in South Carolina: varies
SOUTH DAKOTA


In the state of South Dakota, a lender may foreclose on a property using both judicial

and non-judicial foreclosure processes. The Right of Redemption and Deficiency of

Judgment are both permitted under state law..      If the original mortgage documents

contain a sales clause specifying how the foreclosure process will take place, those

requirements must be followed. Otherwise, the non-judicial power of sale foreclosure is

carried out in the following manner:


           1. A foreclosure notice must be published once a week for four successive

              weeks in a newspaper of general circulation in the county where the

              premises are located.

           2. The lender must serve a written copy of the notice of foreclosure sale on

              the borrower and any lien holder whose interest in the property being

              foreclosed would be affected by the foreclosure. Within 21 days of the

              sale

           3. The notice must contain the names of the borrower and lender, the

              mortgage date, the amount due, a description of the premises and the time

              and place of sale.

           4. The sale must be made by the sheriff of such county, or his deputy,

              between the hours of 9:00 am and 5:00 pm to the highest bidder.

           5. The sale may be postponed, from time to time, by inserting a notice of

              such postponement, as soon as possible, in the newspaper in which the

              original advertisement was published.
6. If the property is 40 acres or less, and the mortgage contains a power of

   sale clause, then a 180-day period of redemption exists. If the property is

   abandoned, the time period is reduced to 60 days. Generally, unless

   special short-term redemption mortgage provisions apply, borrowers may

   redeem within one year of the date of sale.


Foreclosure Timeline in South Dakota: 90 days
TENNESEE


In the state of Tennessee, a lender may foreclose on a property using both judicial and

non-judicial foreclosure processes.     The Right of Redemption and Deficiency of

Judgment are both permitted under state law. If the original mortgage documents contain

a sales clause specifying how the foreclosure process will take place, those requirements

must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out in

the following manner:


           1. A notice of sale must be published at least three different times in a

              newspaper published in the county where the sale is to be made, with the

              first publication appearing at least twenty days prior to the sale.

           2. Unless otherwise ordered, if no newspaper is published in said county, the

              notice of sale must be posted at least thirty days in advance of the sale in

              at least five public places within the county.

           3. At least one of these notices must be placed at the courthouse door and

              another in the neighborhood of the property itself.

           4. A notice of sale must also be served upon the borrower at least twenty

              days prior to the date of sale if the borrower is in possession of the

              property.

           5. The sale must be held between the hours of 10:00 am and 4:00 pm for

              cash to the highest bidder. The sheriff of each county in the state of

              Tennessee may set a minimum acceptable price for the property as long as
   the price is equal to or greater than fifty percent (50%) of the fair market

   value.

6. The successful bidder at the foreclosure sale will receive a certificate of

   sale and may be entitled to receive a deed once the borrower’s right of

   redemption has expired.

7. Deficiency judgments are allowed in Tennessee and the borrower has a

   period of two (2) years to redeem the property, unless their right of

   redemption was waived in the original deed of trust.


Foreclosure Timeline in Tennessee: 90 days
TEXAS


In the state of Texas, a lender may foreclose on a property using both judicial and non-

judicial foreclosure processes. The Right of Redemption is not permitted by state law,

but Deficiency of Judgment is. If the original mortgage documents contain a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. A letter of demand, informing the buyer he has twenty days to pay the

                delinquent payments or foreclosure proceedings will begin must be sent to

                the borrower before foreclosure proceedings may begin.

           2. After the 20 day waiting period (and at least 20 days before the scheduled

                foreclosure sale), a foreclosure notice must be filed with the county clerk;

                mailed to the borrower at their last known address; and posted on the

                county courthouse door.

           3. The foreclosure sale must take place on the first Tuesday of any month,

                even if said Tuesday falls on a legal holiday, but only after the proper

                preliminary notices have been given.

           4.   The sale is to be held on the courthouse steps by auction to the highest

                bidder for cash. Anyone may bid, including the lender, who bids by

                canceling out the balance due on the note, or some part of it.


           Foreclosure Timeline in Texas: 90 days
UTAH


In the state of Utah, a lender may foreclose on a property using both judicial and non-

judicial foreclosure processes. The Right of Redemption and Deficiency of Judgment are

both permitted by law.     If the original mortgage documents contain a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A notice of sale must be published once a week for three consecutive weeks in a

       newspaper of general circulation in the county where the property is to be sold.

   2. The last publication must be at least ten days but not more than thirty days before

       the date of sale.

   3. The notice of sale must also be posted, at least twenty days before the date of sale

       is scheduled, in some conspicuous place on the property at the office of the

       county recorder of the county in which the property is located.

   4. The place of sale must be clearly advertised in the notice of sale and the sale must

       be held between the hours of 8 am and 5 pm.

   5. Borrowers do have a right of redemption in Utah, but the court may extend the

       redemption time past the time allowed in regular judgments so there is no set

       length of time.


   Foreclosure Timeline in Utah: varies
VERMONT


In the state of Vermont, a lender may foreclose on a property using both judicial, non-

judicial and strict foreclosure processes. The Right of Redemption and Deficiency of

Judgment are both permitted by law. If the original mortgage documents contain a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A notice of intent to foreclose must be sent to the borrower by registered or

       certified mail at his or her last known address at least thirty days before the

       scheduled sale.

   2. The notice of intent must include information on the mortgage to be foreclosed,

       state the condition breached and the lenders right to accelerate the mortgage, and

       include the total amount necessary to cure the default. The borrower must also be

       informed that he or she is entitled to receive a notice of sale at least sixty days

       prior to the date of sale.

   3. The borrower may redeem the property at any time prior to the foreclosure sale by

       paying the full amount due on the mortgage, plus costs.

   4. The sale must be held on the property itself, unless otherwise ordered by the court

   5. The property must be sold to the highest bidder.

   6. The borrower is entitled to receive any surplus from the sale, but they may also be

       sued for deficiency if the sale price is not enough to cover the amount of the

       mortgage in default.
   7. If the property is sold without court action, as in non-judicial foreclosure by

      power of sale, the notice of sale must include the following language:



      "The mortgagor is hereby notified that at any time before the foreclosure sale, the

      mortgagor has a right to petition the superior court for the county in which the

      mortgaged premises are situated, with service upon the mortgagee, and upon such

      bond as the court may require, to enjoin the scheduled foreclosure sale. Failure to

      institute such petition and complete service upon the foreclosing party, or their

      agent, conducting the sale prior to sale shall thereafter bar any action or right of

      action of the mortgagor based on the validity of the foreclosure, the right of the

      mortgage holder to conduct the foreclosure sale, or compliance by the mortgage

      holder with the notice requirements and other conditions of section 4532 of Title

      An action to recover damages resulting from the sale of the premises on the date

      of the sale may be commenced at any time within one year following the date of

      the sale, but not thereafter."


Foreclosure Timeline in Vermont: 210 days
VIRGINIA


In the state of Virginia, a lender may foreclose on a property using both judicial, non-

judicial and strict foreclosure processes. The Right of Redemption and Deficiency of

Judgment are both permitted by law. If the original mortgage documents contain a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. Even when the deed of trust makes allowances for advertising the

              foreclosure sale, Virginia Statutes require ads to be published no less than

              once a day for three days, which may be consecutive days. These

              requirements are in addition to the advertising terms stipulated in the deed

              of trust. If the deed of trust does not provide for advertising, then the ad

              shall be run once a week for four successive weeks. However, near a city,

              an ad on five different days, which may be consecutive, will be sufficient.

           2. A copy of the advertisement or a notice with the same information must be

              mailed to the borrower at least 14 days before the foreclosure sale.

           3. The foreclosure sale ad must include anything required by the deed of trust

              and may include a legal description of the property, a street address and a

              tax map identification or general information about the property's location.

           4. The notice must include the time, place and terms of sale. It must give the

              name of the trustee and the address and phone number of a person who

              will be able to respond to inquiries about the foreclosure sale.
5. Any time before the sale, the borrower may cure the default and stop the

   sale by paying the lien debt, costs and reasonable attorney's fees.

6. The sale, which may be held no earlier than eight days after the first ad is

   published and no more than thirty days after the last advertisement is

   published, is to be made at auction to the highest bidder.


7. Any person other than the trustee may bid at the foreclosure sale,

   including a person who has submitted a written one-price bid. Written

   one-price bids may be made and shall be received by the trustee for entry

   by announcement of the trustee at the sale.


8. Any bidder in attendance may inspect written bids.


9. A cash deposit of up to ten percent of the sale price may be required,

   unless the dead of trust specifies a higher or lower amount.


10. Once the sale is complete, the proceeds will go to: the expenses of

   executing the trust; to discharge all taxes, levies, and assessments, with

   costs and interest if they have priority over the lien of the deed of trust; to

   discharge in the order of their priority, if any, the remaining debts and

   obligations secured by the deed, and any liens of record inferior to the

   deed of trust under which sale is made; any remaining proceeds go to the

   borrower.


Foreclosure Timeline for Virginia: 60 days
WASHINGTON


In the state of Washington, a lender may foreclose on a property using both judicial, non-

judicial and strict foreclosure processes. The Right of Redemption and Deficiency of

Judgment are both permitted by law. If the original mortgage documents contain a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. A notice of sale must be transmitted both by regular mail and by certified

              mail, return receipt requested, to the borrower at their last known address,

              and by regular mail to the attorney of record for the borrower, if any, not

              less than thirty days prior to the day of sale.

           2. A notice of the sale must be published once a week, consecutively, for

              four weeks, in any daily or weekly legal newspaper of general circulation

              published in the county in which the property is located.

           3. The notice must be posted in two public places, one of which must be the

              courthouse door, in the county where the sale is to take place for a period

              of not less than four weeks prior to the day of sale.

           4. The notice must contain the time and place of the foreclosure sale, the

              names of the parties to the deed, the date of the deed, recording

              information, a property description, the terms of the sale, and the

              borrowers rights (or lack of) redemption.
            5. The borrower has up to eleven days before the sale stop the foreclosure

                process by paying the past due payments, plus expenses, including trustee

                and attorney fees.

            6. The sale must be made by auction between 9:00 am in the morning and

                4:00 am in the afternoon at the courthouse door on Friday unless Friday is

                a legal holiday and then the sale must be held on the next following

                regular business day.


The sale may not be conducted less than 190 days from the date of default and the highest

bidder will receive a certificate of sale.



Foreclosure Timeline in Washington: 120 days
WEST VIRGINIA


In the state of West Virginia, a lender may foreclose on a property using judicial, non-

judicial and strict foreclosure processes. The Right of Redemption and Deficiency of

Judgment are not permitted by law. If the original mortgage documents contain a sales

clause specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


           1. A notice of sale must be posted on the front door of the courthouse for the

              county in which the property to be sold is located, and three other public

              places, one of which must be the property itself, at least twenty days prior

              to sale.

           2. The notice must also be served upon the borrower and subordinate lien

              holders at least twenty days prior to the foreclosure sale.

           3. The notice must be published as a Class III legal advertisement in the

              county where the property is located once a week for four weeks.

           4. The notice must contain the time and place of the foreclosure sale, the

              names of the parties to the deed, the date of the deed, recording

              information, a property description and the terms of the sale.

           5. The sale must be held at the time and place stated in the foreclosure notice

              and completed by public auction to the highest bidder.

           6. Unless the deed specifies the terms of sale, the buyer must pay one-third

              (1/3) of the bid amount in cash at the sale.
Foreclosure timelines in West Virginia: 60 days
WISCONSIN


In the state of Wisconsin, a lender may foreclose on a property using judicial, non-

judicial foreclosure processes. The Right of Redemption and Deficiency of Judgment are

both permitted by law.      If the original mortgage documents contain a sales clause

specifying how the foreclosure process will take place, those requirements must be

followed. Otherwise, the non-judicial power of sale foreclosure is carried out in the

following manner:


   1. A formal foreclosure notice must be recorded with the county prior to the time the

       first notice of foreclosure is published.

   2. The notice, which must include the time and place of sale, must be published once

       a week for six consecutive weeks in a newspaper in the county where the property

       is located.

   3. The notice must be served upon the borrower in the same manner that civil

       process in a lawsuit is served.

   4. The notice must specify the names of the borrower and lender, the date the

       mortgage was recorded, the amount due at the date of the notice, a property

       description and the time and place of sale.

   5. The sale must be held at the time and place stated in the foreclosure notice.

   6. Unless the foreclosure sale has been confirmed by court order, the borrower has

       one year to redeem the property by paying the amount of the highest bid at the

       foreclosure sale, plus interest.


   Foreclosure Timeline in Wisconsin: 60 days
WYOMING


In the state of Wyoming, a lender may foreclose on a property using judicial, non-judicial

foreclosure processes. The Right of Redemption and Deficiency of Judgment are both

permitted by law. If the original mortgage documents contain a sales clause specifying

how the foreclosure process will take place, those requirements must be followed.

Otherwise, the non-judicial power of sale foreclosure is carried out in the following

manner:


   1. A written notice of intent to foreclose the mortgage by advertisement and sale

       must be served upon the record owner, and the person in possession of the

       mortgaged premises (if different than the record owner), by certified mail with

       return receipt, at least ten days prior to the first publication of notice of sale.

   2. The notice must be published at least once a week for four consecutive weeks in

       a newspaper printed in the county where the property is located. If there is no

       newspaper printed in the county, then the notice must be published in a paper

       printed in the state and of general circulation in said county.

   3. The notice must specify the name of the borrower, the lender and the lender's

       representative, the date of the mortgage and when it was recorded, the amount of

       the default, a description of the property and the time and place of sale.

   4. The sale must be held at the front door of the courthouse of the county in which

       the premises is to be sold between the hours of 9:00 am and 5:00 pm,

   5. Anyone may bid, including the lender, with the highest bidder receiving a

       certificate of purchase.
    6. Such sale may be postponed from time to time by inserting a notice as soon as

       possible in the newspaper in which the original advertisement was published and

       continuing such publication until the time to which the sale shall be postponed, at

       the expense of the party requesting such postponement.

    7. The borrower has three months from the date of sale to redeem the property by

       paying the full amount of the purchase price or the amount given or bid if

       purchased by the execution creditor or by the mortgagee under a mortgage,

       together with interest at the rate of ten percent (10%) from the date of sale plus

       the amount of any assessments or taxes and the amount due on any prior lien

       which the purchaser paid after the purchase, with interest.


    Foreclosure Timeline in Wyoming: 90 days


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