What happens when I foreclose on my house?

by oliver on September 30, 2010

Question:

What happens when I foreclose on my house?

Answer:

If you are 3 to 6 months behind your mortgage payments, your home may be foreclosed on. The foreclosure of a home goes thru a legal process and is handled by the federal court. First, the lender files for a Notice of Default to the county recorder’s office. After the request, the office will issue a Notice of Foreclosure to the borrower, telling him that the house will undergo foreclosure and that the pre-foreclosure process begins. During this period, the lender or homeowner is allowed to sell the property to the open market to avoid foreclosure. The borrower may also work out an agreement with the lender in order to avoid such event. If the foreclosure was not avoided, a foreclosure sale is scheduled wherein the house will be sold to the public thru an auction. A notice of sale will be given to the borrower weeks before the scheduled date. The notice will also be publicized in the local news to inform other people who might be interested in buying the property.

After the auction, the new owner takes over or repossesses the house from the borrower. In case that the previous owner is still staying in the property, the new owner may request for an eviction process. A notice of eviction will then be sent to the previous owner, ordering him to leave the property at once. Lastly, the new owner will be the one responsible in cleaning the foreclosed home. But most of the time, the lender cleans and repairs the house to make the house saleable before the auction.

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