Stop Foreclosure Now!

All About Foreclosure

Within the next 2 years, as many as 7 million American homes will fall into foreclosure – so most of us are justifiably concerned about our future as homeowners. Given the scale of the problem, it’s no surprise that the media is filled with news about folks in danger of losing their homes to foreclosure. Unfortunately, much of the information being put out is also inaccurate. To prevent or stop the traumatic foreclosure experience from affecting our lives, we need to understand how we got here, exactly what foreclosure is and how it works.

FORECLOSURE DEFINED

Foreclosure is the legal action taken by your lender to take possession of your home for non-payment of your mortgage loan.

When you are unable to make your mortgage payments on time, you are legally in default of your mortgage contract. Under the terms of that contract, the mortgage loan was secured by your home and if you default, the lender is entitled to take possession. The law allows the lender to foreclose on any property that secures a mortgage – including a second mortgage or home equity loan. You can also lose your home to foreclosure for non-payment of your property taxes.

GEORGIA FORECLOSURE PROCESS

Georgia permits both judicial and power of sale foreclosures, although power of sale is most common – and means that the foreclosure process in Georgia is very fast. Most mortgages in the state contain a clause giving the lender the right to sell the property outside the court system. In Georgia, your lender can schedule the sale of your home as soon as you are in default – and does not even have to inform you! You can stop the foreclosure by paying off your delinquency – plus penalties, late fees and other costs, but your lender is not required to reinstate your mortgage. Your lender can still require you to pay off then entire mortgage balance in order to keep your home.

ILLINOIS FORECLOSURE PROCESS

Illinois requires judicial foreclosure, which means that foreclosures must be administered through the courts. The court notifies you that foreclosure proceedings have begun and gives you 90 days to ‘redeem’ your property. This means that you can keep your home if you pay off the entire mortgage. The actual foreclosure sale cannot be scheduled until the 90-day redemption period has expired, which makes the Illinois foreclosure process slower – 4 to 6 months from start to sale.

If you’re faced with foreclosure, even if you’re just getting behind with your mortgage, find out for free if a DebtStoppers plan is a better plan for you. Give us a call at 800-440-7235 or set up a one-on-one Personal Debt Analysis online now.