» What is the Foreclosure Process Timeline? » Posted by Realestator      

If Foreclosures are a Buying Method you are interested in, then understanding the Foreclosure Process Timeline is critical. I have outlined it below:

First 90 Days: During this time, no payments are being made on the mortgage. More than likely the homeowner has either had a life altering event (job loss or reduction of income, divorce, death in the family), or their adjustable rate mortgage has reset, and now their monthly payment is more than they can afford. Now someone never having been in this position might think that the logical thing to do would be to take some kind of action right away and call the lender to negotiate. But it may surprise you to learn that 3 out of 4 people in this situation never do that!

Why? Because they are scared. Literally scared into inaction. Most people in this situation create a shield of denial so strong that they actually convince themselves the problem will disappear on its own. Obviously that doesn’t happen.

Second 90 Days: At this time, three months of mortgage payments have been missed, and the lender will now issue a 90 Day Notice of Default to the homeowner. This notice will also be publicly recorded at the County Office. Basically, the lender is saying either bring your mortgage current or lose your home! It’s an extremely stressful situation, and one that most people don’t know how to get out of, so again, they do nothing.

Final 21 Days: This is the final stage. Foreclosure is imminent. If the mortgage and late fees are not paid and brought current, then the home will be sold at a public auction. And once the title is transferred, the sale is final - no Right of Redemption period exists for the homeowner. There is no more time for solutions, the home has been lost! It’s a devastating blow to anyone. They have no where to live and their credit has been destroyed for years to come.

So now that you understand the Foreclosure Process Timeline, how can you, the real estate investor, help someone save themselves from Foreclosure while at the same time adding to your real estate portfolio? In my next post I will explain.

For more real estate investing information, visit the realestator’s website at www.real-estate-investing-support.com

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» Posted in Buying Methods on May 23, 2008.

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