Archive for July, 2012


A foreclosure occurs when you fall behind on your residential real estate house mortgage payments, (rules may be different for a contract for deed) and your lender goes to court to begin the process for him to take the house from you. If you are at the address your lender has, you will receive a summons, informing you that the lender intends to foreclose, and telling you when and where to go to court for the hearing.

It will usually take about a month for a mortgage company to set a foreclosure hearing. But if you wish to reinstate your mortgage, the clock begins running on the day you receive your summons. To reinstate you have 90 days from the service of the summons, to pay all attorney fees accrued from the foreclosure attempt, to pay all delinquent mortgage payments, and pay all arrearage fees. Your mortgage company will have those amounts, and will make them available.

If you are unable to reinstate, the mortgage company will get a foreclosure judgment, and you will have at least 7 months from the date of the service of summons, to redeem your mortgage. To redeem, you will have to pay the entire mortgage, plus interest, plus filing fees, plus attorney fees. If you cannot redeem, the house will be scheduled for a sheriff’s sale (an auction of the property to all interested bidders). You will have at least 3 weeks’ notice before the sale. After the sale, you have no further rights to your home, and will have 30 days to vacate the premises.

So as you can see, unless your mortgage contract says different, you may have about 9 months from the filing of the foreclosure, till you have to leave the premises. Should you file bankruptcy, and stop the clock running on the 9 months, and later have the bankruptcy dismissed, the clock restarts where it was.

If you live in a mobile home, and your home loan is on the home, and not the property upon which it sets, the lender does not have to foreclose. He acquires repossession of the home, like any other lender who wants the return of property you have posted as collateral. He files a replevin case in court, you will be given a summons, and the whole process from summons to your being thrown out of the house, can take as little as 3 weeks.

Even if you can avoid the process server, and the lender convinces the court that he has tried to serve you a summons, and can’t do so, either a replevin, or foreclosure case can proceed without you.



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