Steps In A Foreclosure

What is Foreclosure?


Don't get it twisted!  Foreclosures don't happen overnight.  You can stop the process and turn the situation.




A judicial proceeding by lender / servicer to obtain judgment against the Borrower for Borrower’s breach of promise to pay, and to take borrower’s interest in the house, which was given as security for the promise.



What Are the Steps?



Before a Foreclosure is Filed



Demand Letter or Notice if required by the Note:

setting out breach of agreement (failure to pay)

requiring a certain amount to be paid

with a certain period of time

If no payment or workout-



Foreclosure Complaint is Filed:



What is the foreclosure complaint?

a legal document

filed with the Court

setting out the agreement to pay (Note)

stating the failure to pay

stating the amount due

asking for judgment against the mortgagor

asking for title to the security (the mortgaged property)

Must be served on mortgagor



Mortgagor has opportunity to Appear and Respond

Usually 30 days



If no Appearance or Response-



Default Judgment





Reinstatement Period – all past due payments are made

90 days from date of service of Foreclosure Complaint

If no reinstatement-



Redemption Period – entire amount of Note plus Interest and Expenses must be paid

Longer of:

7 months from date of service or

4 months from date of Judgment

If no Redemption-



Judicial Sale – sale of mortgaged property to highest bidder





Confirmation of Sale by Court – award of Title and Possession to winning bidder





Mortgagor has 30 days of possession before eviction





Eviction


Call me for information to avoid this catastrophic condition 312-498-1138