Your lender lets you know well in advance if your house is going to a foreclosure home auction. They have probably been talking to you and trying to get you to pay the past due amount and if you did not they told you that the home would go to a foreclosure property auction.
Once your lenders files the paperwork for a foreclosure on your home, the public is made aware and companies come out of the woodwork to offer you help to avoid a foreclosed homes auction.
All these companies say they can help you save your home and avoid foreclosure home auction. Some can help you in a legitimate way. The problem is many of these companies have very high fees and try to take advantage of people who are already in a bad situation by offering you way less than the value of your home.
The start of the actual foreclosure process
You need to be educated about the foreclosure process if you find yourself close to losing your home to a foreclosure home auction. The very first day that the paperwork is filed for the foreclosure is when you start getting close to losing your home. The lender has to go through a certain process, though, and you will find out about these from your lender and from the legal documents you receive.
As soon as the lender files for foreclosure, you get fees and fines added to your outstanding loan balance and over time more fines and fees can be added on as the courts and the lenders go through the process.
You should be notified about the date of the foreclosure home auction. The longer the process, the more costly it is to you so you need to find out what the lender says your outstanding balance is periodically.
What you can do to avoid a foreclosure home auction
- You should talk to your lender to see if they can assist you because they do not want the hassle of having to sell your home at a foreclosure home auction.
- You may be able to refinance the loan so payments are more affordable or possibly start fresh with the missed payments being added to your mortgage to be paid later.
- You can also get them to take the late fees off or give you longer to find a solution before foreclosing on the home.
- You need to sit down and figure out what your options are to avoid foreclosure home auction. If you have the money or can get the money somehow, you can pay the past due amount and start fresh.
- You may be able to borrow the money from a family member or tap into an inheritance left to you.
- You can also look into refinancing, which could lower your payment amount and let you start fresh.
- You can also get cash out of the equity of your home to catch up on other bills if you refinance.
- Another option is to try to sell your house for at least what the outstanding loan balance is. You may not make a profit on the sale, but you could possibly avoid losing the home to a foreclosure home auction this way.
You need to act fast if you are in this situation.