PHASE 1 – PRE-PRE FORECLOSURE
Day 1 Miss payment to lender
Day 15 Grace Period to make up “on time status”
Day 16 Missed payment notice
Day 31 After 2 missed payments – Demand Letter. (No recording)
30 day notice for payment makeup or further action will be taken
PHASE 2 – PRE-FORECLOSURE
Day 90-120, Reinstatement period. (grounds to Record)
90 Days of missed payments is a Delinquent standings.
N.O.D.- Notice of Default with the county. 90 days to pay.
PHASE 3 –
Notice of Trustee Recorded. Newsletter to sell property and list owner names
Equitable RIght of Redemption – pay entire mortgage balance and all fees.
Day 180, N.O.T. sale against your home in 21 days.
PHASE 4 – PROPERTY AUCTION
Day 201, Foreclosure sale – Trustee’s deed is given to the highest bidder.
Opening bid starts at the sum of the outstanding loan, fees, liens, other cost.
PHASE 5 – AFTER AUCTION
Day 202, Statutory Right of Redemption – borrower must pay bid price plus interest,
and other allowable fees.
Day 202 – LENDER WILL TAKE BACK PROPERTY if opening bid is too high.
PHASE 6 – EVICTION NOTICE TO EVACUATE IMMEDIATELY
Day 203 – Sheriff Lockout
To stop Foreclosure
Consider current situation:
Amount of past due balance
Debt to Income ratio
Does home pass the Net Present Value test?
Did you default on a prior modification?
12 ways stop foreclosure
3rd party authorization form with banks from seller to open communications.
Have the seller call the bank on the spot. Have verbal authorization for 48 hours before you fax forms over once every day due to unmotivated workers on their end moving a to b.
When Talking to the banker requesting payoffs, reinstatement fees, what type of loan fix(20-30?), is there balloon option?, adjustable interest rates?
Ask for a forbearance agreement.
“Auction date in 5 days but i got a purchase agreement/contract on hand. It will get your paid in full. I got copies. Its going to title. Give us enough time to close. Can you postpone another 30 days so we can close.”
12 Ways to Avoid Foreclosure
Partial FHA Claim
Temporary Restraining Order (TRO)
Pay-off the Rears
Deed in Lieu
Pay Off Balance