Exactly WHAT are the steps of Pre-Foreclosure?

by on June 10, 2009

These are the steps of Pre-Foreclosure:

1. Homeowner misses a payment

2. A late notice is sent by the bank to the homeowner

3. The homeowner misses a second payment

4. The bank attempts, in writing and by phone to contact the homeowner to resolve the situation

5. No arrangements are agreed upon and the homeowner misses a third payment

6. The bank issues a formal demand for payment under the note in full, based upon the acceleration clause. Most of these notes contain language which says something to the effect that if you don’t make the monthly payments as promised they will accelerate the note. Once this happens, you legally owe the full balance of your note plus back interest, late charges and any legal fees that may result.

You will find that from this stage onward, the bank will not be interested in you resuming payments on your home. The will now demand much more to reinstate your loan.

Although this is part of the pre-foreclosure process you should be sure that you are working with a specialist such as myself to help you deal with these matters.

7. No payments or settlement arrangements are made and accepted by the bank

Next is the Formal Legal Foreclosure Procedure…

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