The Bank Foreclosed On Your House Now What?
You are caught in the messed-up economy like so many of your friends and neighbors. You’ve been struggling to make your mortgage payments for months. But now you’ve been laid off, or took a cut in pay to keep your job, or have extra bills (credit card, medical, etc.) that are swallowing more than you can make. And your mortgage holder has been threatening to foreclose on your house the bank wants their money. You’re scraping by, week after week, and trying to make it all work. But it isn’t. Now the bank has foreclosed on your house it’s in black and white on a notice you got in the mail. Now what should you do?
Backing Up…
If you’re just worried it will happen to you, before you get that notice from the bank, give them a call. Explain your situation and why you’ve been making your payments late (or not at all). They’ll appreciate knowing the facts, and sometimes they have some wiggle room on whether the bank will foreclose on your house at all. Often they want your situation written down and faxed to them, with your signature, so that they can put it into your file. If so, explain your situation as best you can, and especially include information about why you’re in the difficult situation you are in (lost your job, business is slow, extra medical bills…whatever has changed such that you’re struggling). They will also want to know when things will get better and how (getting a new job, commission check due to you soon, selling the home, etc.). Talk with them, work with them, be grateful for whatever good graces they grant you, and stick to the deal you carve out with them. Whatever you can do to keep from the bank foreclosing on your house is important to do (other than selling your soul to the devil or offering them your firstborn son…). The bank holds all the cards, and you need them to work with you. Be cooperative.
Once It Happens…
If the bank has foreclosed on your house, they can’t just undo it if you ask pretty please, or even if you pay the amount your mortgage was behind. There will be extra fees as soon as the foreclosure has begun. Once the bank has foreclosed on your mortgage, the best thing to do is to act as soon as possible. Every week you delay adds to the fees not just in your regular, monthly, mortgage payment, but in foreclosure fees, attorney’s paperwork, etc. The sooner you resolve the situation, the less fees will be.
Talk to the lender to know exactly how much money is needed to get you caught up. They will tell you how much it is, and when it would need to be paid by before it increases again (for a new month or additional foreclosure fees, etc.) It will likely be more money than you expected, so don’t faint when you hear the amount. That’s the price you have to pay for allowing the bank to foreclose on your house.