What happens after a foreclosure notice?

by oliver on September 30, 2010

Question:

What happens after a foreclosure notice?

Answer:

Most of the time, the bank that holds your mortgage will file a court claim once you have received a foreclosure notice. This claim requests the court to permit the bank to completely foreclose on your home or property. You will be given a notice stating the date of the upcoming court hearing. It is up to you if you want to attend the scheduled hearing. However, if you want to stop the foreclosure, attending the hearing with a legal representative is a must.

During the duration of the hearing, you and the bank that holds your mortgage may come up with an agreement in order to stop the foreclosure. However, if such agreement is not made, the court will grant the request for foreclosure. After the grant, the foreclosed home will be sold through any of the following ways. Most of the time, the foreclosed property is sold in a public auction.

The property may also be sold through the bank or by using a specialized realtor or agent. A notice of foreclosure sale, public auction or sheriff’s auction will be place in the local paper. After the property has been sold, the new owner will take the necessary legal steps for you to evict the property. If you do not want to evict the house, you may want to reach a rental agreement with the new owner. Remember that every state has a different way of handling foreclosure processes. This is just a general overview of the process so if you want to know the details of the process in your state, contact an attorney.

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