If you are facing a foreclosure, you need expert help to deal with the lenders and servicing companies. Unless you are a lawyer, you will most probably find it difficult to understand the various procedures involved. Here are some tips which will help you understand what’s going on and possibly even stop foreclosure.

Question: How many times the payment can be defaulted on before a foreclosure?

Answer: It mainly depends on the State and lenders. In most cases the notice of default will be served after the third missed payment.

Question: What should I do when I get a notice in mail?

Answer: Different notices may be received either in mail or in person before foreclosure. In such cases you have to open the letter and accept any notice. You also need to keep watch on public notice section of local news paper. Your lender will send late notices and warnings several times before the beginning of the foreclosure process. Usually the summons and complaints are the official beginning of the foreclosure. This is done by the lender through a foreclosure notice served through a sheriff as summons and complaints. The summons return date on the form is the dead line for filing the papers and not the hearing date. The complaint letter is only an intention of lenders (plaintiff) for foreclosure for non payment of debt. On receipt of summons and complaints you should certainly file an appearance, informing that you are intended to cooperate and wish to appear in court. The filing and appearance form should be done immediately if you want to contest the foreclosure. It is advisable to seek legal help immediately on receipt of first notice or warning letter from the lender.

Question: How can I utilize my equity to avoid foreclosure?

Answer: First, you have to find out all your actual equity. Then you need to order an official payoff and get a title search, property appraisal and valuation. Once you have identified and ascertained you equity you will have to do one of the three things to get the access to it. The first option is to avail a refinance to get cash. The second option is to get a second mortgage. The third option is to sell the home outright and settle the loan dues and keep the balance with you.

Question: What is meant by deficiency judgment?

Answer: The deficiency judgment means that the court will order you to pay the difference between the selling price of your home and your liability to your lender. For example if you sell your house for $100,000 and if your payoff is $200,000 then the court will order you to pay the balance amount of $100,000 to the lender. In most of the cases the lenders won’t peruse a deficiency judgment because the home owners possess a few assets to recover the amount.

Question: Is it possible for me to get a loan after foreclosure?

Answer: Yes it possible for you to get a loan after foreclosure but loans are usually granted based on the assessment of your income and equity in the home rather than your credit. On foreclosure your credit is reduced significantly and so you have to take necessary steps to improve your credit quickly.

We hope that these questions and answers will certainly help you to understand the foreclosure process and the steps to be taken to avoid the foreclosure. There are many more concerns and financial hardship that may lead to a foreclosure. The proper understanding of the basics of the foreclosure process will help you to be realistic and sort out the situation and improve your financial condition.