What Happens if my House Goes Into Foreclosure?
Even if you have missed a few payments and your house goes into foreclosure, all hope is not lost forever. The most important thing you need to do is to remain in touch with the bank at all times- no matter how annoying the lender is.
Even if you have missed a few payments on your mortgage or have received a notice of default, there is no reason to panic. Many people panic because they think that when their house goes into foreclosure, that it is forever lost to them. They cut off communication with their bank because they think that their bank is coming after them for the amount they owe on their loan.
You actually don’t have to move out of your home as soon as your house goes into foreclosure. It is good to remember to always answer the phone when your lender calls or call them yourself. When they do call, tell the bank exactly why you have missed a few payments and be clear to explain to them exactly why you want to keep the house.
The bank will work with you if you tell them you want to keep your home and catch up on missed payments. If you are unable to repay your bank, and know that you going to lose your home, you still have to go through a legal process.
The foreclosure process can take from six months to a year to complete. Don’t pack up and move out right away though. Use this time to save up as much money as you can before you have to move out of your own home. You have up until the date of the auction to live on the property and no one can remove you from your property until that date.
Even if your house goes into foreclosure, you can still stop a foreclosure from appearing on your credit report. In order to prevent this from happening, put your old home up for sale and see if you can sell it.
If you can sell the property for the amount you owe on the loan, then you will be in good shape. If you decide to go down that route, you can ask your bank to put up your home as a short sale. You can even ask about a deed in lieu. There are many ways you can prevent a foreclosure from appearing on a credit report.