If you’ve fallen behind on your monthly home loan payments by more than 90 days, most lenders will deliver you a Notice of Default, informing you of their intention to pursue recovery of the cost of the home loan through foreclosure unless the loan is brought back to current immediately, or within 30 to 60 days in some cases. So, what should you do when you get a foreclosure notice in the mail? If you can come up with the funds to cover the payments that are due, along with all of the associated fees and penalties that come with each late payment, the lender has to reverse the foreclosure proceedings and you get to keep your property.
Responding to a Foreclosure Notice
You have two choices when you are given the notice if intent to foreclose.
- You may come up with the necessary funds to reverse the foreclosure, and regain control of your property, or
- You can contact your lender immediately and discuss whether or not they will allow you to pursue another option to satisfy the amount due.
Perhaps you could qualify for a mortgage modification loan, which would allow you to pay off the loan that is in default and enter into a new contract that has a lower, more manageable monthly payment. The downside to this agreement is that the term of the loan is usually extended, so in the long run you end up paying much more in interest. The lender also isn’t obligated to agree to a modification, even if you do qualify.
The Right to Property Redemption
Another choice you may have is to try to exercise your right to redemption of the property foreclosed on. If you can cover the cost of the foreclosure through another lender or another means, you can regain ownership of the property by buying it back at the foreclosed price. If the right to redemption is available in your state, and if you you choose to exercise this method, you must do so within 60 to 90 days of the property foreclosure being finalized.
Getting Help
Whenever you are dealing with your lender, or any contract that is legally binding, you should consider getting legal representation in order to make sure your rights are not being infringed upon. It is a lawyer’s business to know your rights and the legal process regarding foreclosure and your attorney may be able to help you stop the foreclosure in its tracks.
