If you're thirty days overdue on your mortgage, you may not be hit with a foreclosure default notice right away, but you've already started making the estate foreclosure real possible. Ever since the Depression, mortgages have been regulated to actually make it the bank's estate foreclosure really hard to do. The reason for that is that, in the past, the bank could call in the mortgage even when you weren't late, which ended up costing millions of people their home when the stock market fell and banks had a run on their money. They called in most debts that could be called in, and unfortunately, those people that didn't own their home outright had the balance of their loans called in, leaving them helpless and homeless. The same can't happen today because there are safeguards in place that don't allow a bank to foreclose unless you meet specific criteria.
A Typical Timeline For Foreclosure Process
In order to know if the estate foreclosure real possibility exists for you, you should be aware that there is a typical timeline that most foreclosures follow. It can vary by state and the process can be interrupted at any time that you manage to bring your account current. The first step is when you are over 90 days late with your mortgage payment. In between the time you are first late with your payment and the 90 day window timeframe, you should pick up the phone and call your lender. This is the best time to make sure that you don't have an estate foreclosure real problem. Working with your lender can buy you some additional time and help you to negotiate a workout of your, particularly if you are suffering a temporary setback. Otherwise, after 90 days late and attempts to contact you with no response can lead your lender to file a foreclosure lawsuit in court.
From there, the clock starts ticking. You will receive a court summons. You have to respond in a set period of time or after that you get into big estate foreclosure real problems. You may end up with a default judgment and the lender is now making plans to sell your house at auction. The entire process can be in as little as 180 days, although the process in some states can linger for up to 8 to 12 months, depending on your actions. Be sure to check with your state to find out what your timeline is if you are facing an estate foreclosure real possibility.
Now that more homeowners are getting into trouble with their adjustable rate mortgages, there are more bank foreclosure real estate opportunities out there. If you are an investor looking for property at a discount, a foreclosure can be a good way to go if you are dealing with the owner directly. Many investors think the only way to buy foreclosures is at auction, but there are other ways to approach a homeowner in trouble to work out a deal in a bank foreclosure real estate issue that can lead to more equity for the homeowner and big profits for the investor. There is also less risk when you are dealing with the homeowner directly because they won't be tempted to trash the place before they leave, if they feel they've gotten a good deal.
How To Contact The Homeowner
Once a foreclosure notice goes out there are companies that keep track of properties that are going into foreclosure. Investors can join sites like RealtyTrac.com to find out what bank foreclosure real estate opportunities are in their area. The nice thing about some of these sites are that they also provide information on outstanding liens and even homeowner contact information. Of course, you can get the same information scouting the county deeds records, but a title and liens search should be done prior to contacting the homeowner.
Most people begin their approach by sending out postcards with their information to the homeowner in distress. Keep in mind that many investors will be competing with you to offer a deal to the homeowner who may ignore everything up until the last minute. Sometimes you can locate the home owner's phone number and contact them this way. The last way, face-to-face, is not recommended for people just starting out as looking into bank foreclosure real estate. It takes a certain finesse to deal directly with a distressed homeowner.
Working Out A Deal
You can work out a deal on bank foreclosure real estate that is in the preforclosure state. That's because at any point in time the homeowner can pay off the debt and bring the account current by selling the home. It is up to you to see that there are no outstanding liens or other issues that might affect the value of the bank foreclosure real estate offer you've written up. Otherwise, you will have to wait until auction to make a bid on the property and by then it may not be possible to do an indoors home inspection, making the deal riskier.
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