Behind on Mortgage – Avoid Foreclosure
Are you behind on your mortgage payment and facing foreclosure? Is the bank and/or trustee sending you nasty letters? If you are facing foreclosure or behind on mortgage payments we understand that it can be a very stressful time. Since 2003, we have helped countless homeowners facing foreclosure navigate through the oftentimes complicated process.
How do I Avoid Foreclosure?
The video below goes into great detail about the foreclosure process in DC, Maryland and Virginia. If you prefer to read what was stated in the video please see the transcript at the bottom of this page.
Watch this Avoid Foreclosure video by Brad Chandler as he summarizes how the foreclosure process works and how you can avoid Foreclosure with Express Homebuyers.
Being behind on mortgage payments doesn’t mean you have to lose your house to the bank through foreclosure.
You have options to stop foreclosure:
- If you have gotten to the stage of the bank turning your account over to a trustee, the foreclosure process has started. If you can find the money to reinstate the loan the foreclosure proceeding will be immediately stopped. Reinstatement means paying the bank back the payments and interest you missed and paying the trustee any related legal and administrative fees.
- If time permits you can list your home with a realtor and sell before the actual auction date has occurred. This can be risky if you are facing an impending foreclosure auction, as the buyer may not settle before the auction date. If you have equity in your home you may not want to risk the countless things that could potentially go wrong and stop the sale. If the sale is stopped the chances of your going to auction are greatly increased, depending on when the auction date is scheduled.
- You can call Express Homebuyers at (877) 804-5252 and get an offer in 7 minutes to sell your house and save your equity. We can reinstate your loan and even make a few mortgage payments, on your behalf, to save your credit. Foreclosure can be extremely damaging to your credit and you want to avoid it at all costs.
To get the process started, or if you just want some additional information on how to avoid foreclosure, then contact us today at (877) 804-5252!
Get an offer in 7 minutes to sell your house in 7 days or fill out the form on the top right and we will get right back to you.
You have nothing to lose but a few minutes and the call is confidential.
Transcript for the above video:
The information contained in this video is provided to you “AS IS”, does not constitute legal advice, is governed by our Terms and Conditions of Use, and we are not acting as your attorney. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in this video.
The law changes very rapidly and, accordingly, we do not guarantee that any information in this video is accurate and up to date. Additionally, the law differs from jurisdiction to jurisdiction, and is subject to interpretation of courts located in each county and state. Legal advice must be tailored to the specific circumstances of each case and the tools and information provided to you may not be an appropriate fit in your case. Nothing provided in this video should be used as a substitute for the advice of competent legal counsel.
The following is a brief overview of what foreclosure is and a few ways it can be stopped. Because Express Homebuyers serves Virginia, Maryland and the District of Columbia I will be providing overall foreclosure guidelines. To find out about specific foreclosure laws regarding your state please consult an attorney.
Foreclosure is the legal proceedings initiated by a creditor to repossess the collateral for the loan that is in default. In the case of home foreclosures, the creditor is the bank or the lender, the collateral is your home and default occurs when the homeowner misses payments on the loan for a period of time. Most foreclosures proceedings in Virginia and DC happen without the involvement of a court of law. This is because the mortgage or deed of trust usually contains a clause that allows the lender the right to sell the property. Once a borrower is in default, the lender starts foreclosure proceedings after sending a notice to the borrower that the terms of the mortgage or deed of trust have been violated.
The State of Maryland is a bit different. To begin the foreclosure process, a lender must file a complaint against the borrower and obtain a decree of sale from a court that has jurisdiction where the property is located. The court will then determine whether a default has occurred. If the court finds a default, it will determine the total amount of the debt, interest, and costs due and present a sensible time for payment to be made. The court may order that if payment is not made within a certain time, the property must be sold to satisfy the debt. Before the sale date is set by the court, the lender is not required to notify the borrower of the pending foreclosure proceedings.
This differs from Virginia and DC where some type of notification must be sent to the borrower before any sale date is scheduled.
While the foreclosure process is different in the three jurisdictions, if the borrower does not pay the outstanding amount owed, the property will go to auction to be sold. Some states require public notice be given of the impending auction and some do not.
In DC and Virginia, the trustee announces the opening bid at the sale and may accept higher bids, with the property selling to the highest bidder. The trustee is an institution to whom the lender gives legal title to your home until the loan is paid off, in full. At the auction, if no one bids, the foreclosing lender will win the bidding with the opening bid. The trustee completes the necessary documents to transfer ownership of the property to the highest bidder.
Auctions are typically held on the courthouse steps or at an auction house, depending on the state.
In Virginia and DC, the borrower has no rights of redemption after a deed of trust foreclosure sale. This means that the auction sale is final and the ownership of the property will revert to the highest bidder and you will be forced to move from your home. In Maryland, there is no established redemption period for the borrower, but the courts can set a redemption period on a case-by-case basis. The lender can, but usually doesn’t, seek a judgment against the borrower if the sales price to the highest bidder is less than what is owed to the lender.
Again, while the foreclosure process varies from state to state it typically takes from a few months all the way up to a year, depending on the lender. The borrower has the option to pay off the outstanding balance and fees within a certain period of time prior to the auction. This process is referred to as reinstatement. This is one of the ways that a foreclosure can be stopped.
Another way of stopping the foreclosure process is to sell your home prior to the auction, thus paying off the lender from the proceeds of the sale. There are two options for selling your house – the traditional way and through a short sale. If your mortgage balance is less than the market value of your house you would go through a traditional home sale transaction. Express Homebuyers can make that transaction extremely simple in DC and Virginia. First, you call us at the number above or fill out the “get an offer” form and one of our local home buying specialists will ask you a few simple questions about your house. After collecting that information and doing our analysis, we give you an instant and fair offer over the phone. When you accept our offer we come out to visit your house, answer your questions and fill out the paperwork. From there, we schedule a settlement date that is convenient for you, and on that date we officially buy your house. Lastly, your house is sold, and you receive your money fast. No interviewing agents, no Realtor commissions, no dealing with contractors and repairs. Leave it to Express Homebuyers to handle the details.
On the other hand, if a traditional sale is not an option, due to your mortgage balance being greater than the market value of your house, the transaction will be a short sale. This is the process by which the bank or lender would agree to accept an amount less than what was owed to them. This has been a very common practice over the past 8 years as the value of real estate has often dropped below what is owed on the house. Lenders agree to do this because they know that they are likely to lose additional money if the house goes to foreclosure. As a seller, a short sale is preferable to a foreclosure as your credit rating is not impacted as severely. Selling a house via a short sale is a legitimate method for stopping the foreclosure process and allowing the homeowner to get on with life. For further information on how short sales work please contact an Express Homebuyer’s Sales Specialist at the number above.
For any additional questions you may have about this video, please give us a call at the number above. We’re local, we’re experienced and we are Better Business Bureau accredited. We have bought more than 2,200 houses in the DC Metro area. Call us now at the number above for a free and confidential consultation. Get an offer in 7 minutes and sell your house in 7 days.