foreclosure stages: what you need to know

The Foreclosure Process Will Differ from One State to the Next, However, there Are

Five Basic Stages that Make Up the Timeline

FORECLOSURE STAGES –

DAVID M. OFFEN PHILADELPHIA BANKRUPTCY ATTORNEY

WHAT YOU NEED TO KNOW STAGES

http://www.getfreeofbills.com/

Foreclosure Stages – What you Need to Know www.getfreeofbills.com 3

The thought of going through the foreclosure process is not one that

anybody gets excited about. However, this is reality for thousands of

homeowners throughout the country every year.

Anybody who is faced with the prospect of foreclosure can learn more by

contacting their lender and asking the right questions, such as:

Why are you moving forward with the foreclosure process on my

property?

What stage of the process are you currently in?

Is there anything I can do right now to put an end to this?

In other words, you need to be open and honest with your lender. This

allows them to see that you are serious about fixing your problem as

opposed to running away and hoping for the best.

The foreclosure process will differ from one state to the next, however,

there are five basic stages that make up the timeline.

MISSED MORTGAGE PAYMENTS

When you take out a loan to purchase a home, you agree to certain terms

and conditions. As long as you

continue to make your monthly

payment, in full and without delay,

your lender will be happy with you as



a customer. If you miss a payment, you can expect your lender to notify

you of this without delay.

One missed payment will not result in foreclosure. When this becomes a

habit, such as several missed payments, your lender has no choice but to

step in and do what is best for them.

Note: if you know you are going to miss a mortgage payment, no matter

the reason, contact your lender to discuss your options. For instance, if you

have lost your job or are facing a serious illness, your lender may be willing

to work something out with you.

NOTICE OF FORECLOSURE

If you miss multiple payments and have not had discussions with your

lender about what to do next,

you can expect a notice of

intention to foreclose or a

foreclosure action to be filed

against you

This is also known as a notice

of default, but does not mean

your home is going to be

repossessed. What it does mean is that the lender is aware of what is

going on, and is proceeding to take action.



In Pennsylvania the lender will typically notify you of what is happening. If

you are still living in the property, this makes it simple for you to realize

that you are facing a very serious situation.

PRE-FORECLOSURE

You can usually also put a stop to the foreclosure action by paying your

mortgage account completely up to date. Many times your lender will

refuse to take partial payments and will only agree to receive in full the

total amount which you are in default. You still have time to stop the

foreclosure process, but only if you step in now and make it known that

you are willing to do whatever it takes to save your property. You can try

to work out a repayment plan or a mortgage modification but this does not

necessarily stop the foreclosure action

Again - there are many things you can do to put a stop to a foreclosure

action and prevent the lender from moving forward:

Make all back payments

Change the terms of your loan

Refinance your loan or get a

mortgage modification

During this stage, you may also want to

discuss the possibility of a short sale if

you are not interested in keeping the



home. This is when the lender agrees to let you sell your home for less

than what you owe. They are going to take a loss on the transaction, but in

many cases it is better for the lender than a foreclosure.

With a short sale you are not staying in your home, but instead selling it as

a means of escaping your situation.

HOME AUCTION

As the name suggests, your home is auctioned off to the highest bidder

during this stage. When this happens, your home is gone for good as

somebody else is now the owner.

In Pennsylvania, you can stop a foreclosure action or a sheriff sale by

filing a bankruptcy prior to the sheriff sale.a right of redemption state, you

have until the final day to negotiate a deal with your lender. In other

words, don’t give up until your home is actually sold at auction.

POST-FORECLOSURE

If a Mortgage Foreclosure Sheriff Sale takes place in Pennsylvania, when

the hammer falls it is too legally too late to take action to save the home.

You can be forced out of your home. However, there are actions which

you can take which may possibly allow you to be able to take to stay in the

home. As with most situations, the earlier you act, the more you are able

to accomplish and the easier it is save your home. Your best step to take is



action at an early stage so that you can discuss how best to save your

home.

To improve your chance of staying in your home, hire an attorney that

specializes in real estate foreclosures and bankruptcy. A legal professional

can protect your rights, guide you through the process, and help you do

whatever it takes to save your home.



About the Author

David M. Offen

A native to the Philadelphia area, Mr. Offen attended Temple University College and Law

School. Mr. Offen is licensed to practice in the States of Pennsylvania and New Jersey. He is a

member of the Eastern District of Pennsylvania Bankruptcy Conference and the National

Association of Consumer Bankruptcy Attorneys.

David M. Offen has over 20 years of experience and has helped over 8,500 individuals and

families go through the Bankruptcy process. These filings have included stopping foreclosure on

a home, stopping repossession of a car or vehicle, stopping IRS tax levies and frozen bank

accounts and putting a stop to; lawsuits, credit card bills, personal loan, bills, utility shutoffs

and other types of debt.

With Mr. Offen’s help, these families have saved countless millions of dollars of debt.

David enjoys getting to know his clients and will be happy to answer any and all questions you

may have. You are treated as a person and not a number.

Remember – there is no such thing as a silly question. Don’t be afraid to ask any questions you

may have. David M. Offen has found that people looking to file Bankruptcy are not trying to

avoid their responsibilities but rather to make a difficult situation easier. David enjoys getting

people to stop worrying and making their financial lives much better and stop feeling

overwhelmed.

In some cases, Bankruptcy is not the best move and he can review your situation with you and

tell you the right move for you to make. Get a completely free evaluation of your situation. For

the past 20 years, the Law Offices of David M. Offen has been among the top filers of

bankruptcy in the Eastern District of Pennsylvania.

The Law Offices of David M. Offen

215-625-9600

www.getfreeofbills.com

The Curtis Center

601 Walnut Street, Suite 160 West – 1st Floor

Philadelphia, PA 19106

