Unfortunately, one of the more common consequences of homeowners facing a financial hardship is a lawsuit in one form or another. If a foreclosure case has not been started yet, but you have missed mortgage payments or you have gotten an Acceleration letter from mortgage holder, it is very important that you seek help now. Typically, they will need to pay the sale price or full loan balance, plus any interest and costs the bank incurred during the process.
If the days on market is 120 days and the foreclosure auction is 45 days away, you need to an aggressive Realtor who will do everything they can to sell your house now. Usually, defaulting for one or two months would not really instigate foreclosure, especially if the borrower was able to keep his or her debt up to date.
But banks are already calling up valuers to â€˜discover’ the real market value of the house,â€ the source says. However, once the lender determines the borrower to be in default, a legal filing is made by the lender and the timeline for foreclosure will begin. If the bank takes the property to the foreclosure auction and extinguishes junior liens, they will be creating equity in a matter of minutes.
A loan modification may be able to make your monthly payment more affordable. You may ask for time to move out of the property; however the bank does not have to grant the request and may request that you evacuate the property immediately. The key to whether the bank can make money is dependent on the property having equity.
Or, if there is an escrow shortage due to a rise in property taxes or insurance premiums, the escrow payment will increase. The Seattle-King County Asset Building Coalition’s Washington Foreclosure Prevention Resource Guide is a great resource for homeowners to learn more about the foreclosure process.