What happens to a home after foreclosure?


What happens to a home after foreclosure?

Foreclosure is the legal process of taking possession of the property to sell at auction. Once the property sells at auction, you are no longer in foreclosure. After foreclosure, you must find a new place to live and start rebuilding your financial life.

How long will a foreclosure affect me?

Foreclosure stays on your credit report for seven years. A foreclosure stays on your credit report for seven years from the date of the first missed payment that led to it, but its impact on your credit score will likely fade earlier than that.

What to expect from the foreclosure process?

30 days of non payment,your lender will send a notice stating your payment default

  • 3-6 months of continued non payment,your mortgage company will begin to foreclose the property
  • Lender files court documents ( lis pendens ),requesting the court issue a final judgement of foreclosure
  • What are the steps in the foreclosure process?

    Step 1: Borrower Begins Missing Payments. Without a missed payment, there cannot be a foreclosure. Therefore, the process itself begins with the first payment that goes unmade. Initially, the debtor should receive a notice of the missed payment, and likely will incur late fees as a result. If the skipped payment is a one-time situation, the

    Which steps are included in the foreclosure process?

    The borrower defaults on the loan.

  • The lender issues a notice of default (NOD).
  • A notice of trustee’s sale is recorded in the county office.
  • The lender tries to sell the property at a public auction.
  • If the property doesn’t sell at the auction,the lender becomes the owner.
  • What is the process for buying a foreclosure home?

    Valid photo ID

  • Last two years’ W-2s and/or 1099s
  • Last two years’ tax returns
  • Pay stubs for last 30 days,if applicable
  • Statements from bank accounts,retirement accounts,and other asset accounts
  • Divorce decree or separation agreement,if applicable