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What Is Foreclosure
A foreclosure means that your lender is going to take back or repossess your home. When you stop making mortgage payments, your loan goes into default, which means you have missed enough payments (usually about three) for the lender to take action that results in foreclosure. This action usually means you will receive a “Notice of Default” from your lender or loan servicer. If you don’t make other arrangements with your lender to prevent it, the foreclosure process begins. When foreclosure is completed, your home will be sold by the lender. You will be forced to leave and may not receive any money resulting from the sale of the house. Your credit rating will be severely damaged and it could take years before you will be able to buy a home or take out a loan again.

Foreclosure can happen very quickly. In some states, the entire foreclosure can be completed in less than two months. If you have already missed several payments, there may still be time to save your house or avoid the pain and loss that foreclosure entails. Each state has different procedures for foreclosure and you should become informed about the state’s procedures that will affect you. Read foreclosure policies by state.

A letter from a law firm should be taken especially seriously. If you have not already done so, call the institution that takes your mortgage payments (known as your loan servicer) as well as the law firm handling the foreclosure. You should inform them whether you are interested in saving your house. If you have already decided not to keep the house, here are ways you can avoid a foreclosure.

It’s also a very good idea to talk to your mortgage servicer. We’ve put together a list of toll free numbers for the major loan servicers so you can call yours to discuss your situation. The telephone number for the law firm handling your foreclosure should be listed on any letter you may have received from them.


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