You can also get foreclosure avoidance counseling at HUD.gov or by calling 888-995-HOPE. Selling the home to cover the mortgage might also be an option at this point, so Blake advises calling a real estate professional during this time to take advantage of all your options. Termed a foreclosure avoidance assessment, this period might include requests for a payment adjustment, interest adjustment, deferral, or other accommodations. In many states, a lender or servicer cannot file a notice of default until 30 days after contacting the homeowner to assess the homeowner’s financial situation and explore options to avoid foreclosure, Zuetel explains. But it’s also the law in many states, says real estate attorney and broker Bryan Zuetel of Esquire Real Estate in Irvine, CA. This is partly because it’s in a lender’s best interest to make things work-after all, the lender wants its money. Lenders usually offer alternatives during this period, including different payment plans to help the homeowner get back on track, keep their home, and keep paying their monthly mortgage bill. That said, banks want their money, so borrowers can expect an influx of emails, letters, and phone calls from their lender or bank trying to collect. “They will usually give the borrower a grace period because they recognize the reality that people face temporary financial hardship at some point in their lives,” explains Lisa Blake, a real estate broker and owner of The Blake Team in Aurora, CO. And it’s rare for lenders to begin the foreclosure process after just one late mortgage payment. Homeowners have to first default on their mortgage, failing to pay their required monthly payments. Foreclosure process step 1: DefaultĪ bank can’t just start the foreclosure process on a home whenever it wants. Here’s a look at the steps a homeowner will likely go through-plus some ways to get off this train and stop the foreclosure process from happening.
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