Feb
18
Steps banks have to take before they can reposses a property?
By
I am very worried about my current situation with my mortgage arrears. What steps do the banks have to take before they can reposses my property? How long does this process usually take and how many months do you need to be in arrears? Any advice would be helpful.
Sell House Quick
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6 Comments
May 10th, 2009 at 11:12 am
Well they have to go to Court and get an Order for Possession
May 13th, 2009 at 5:00 pm
They will send you a notice of default and that is when the foreclosure process starts. Then they go to court and get you evicted
May 15th, 2009 at 6:57 pm
I work in social housing and as a landlord we have to make steps to get the money first, normally we allow for several months arrears before applying to court and only when the tenant is none compliant. Banks work differently and dont have to give notice before making an application to court for possession. Now the county courts dont like giving anyone possession and would welcome a commitment to pay the arrears however certain banks are ruthless and dont accept and so the judge has to rule for possession. However what you can do is contact the bank, explain the situation and ask for a mortgage break/holiday which will allow for some missed months, or offer to start paying the arrears on top of the mortgage payments, or ask to alter your terms, up your years etc to reduce to amount payable. you can get help with mortgage payments if you have come out of work, however the social normally wont pay for 6 months. But to answer your question, it depends on the bank, I have known alot of banks to take you to court for just one missed payment before now. I have even known banks to sell the property at auction at a cut price to a sister company and sue the family for the remaining loan. ITS NOT A PRETTY SITUATION TO BE IN. I am finding alot of applicants for social housing because of repossession from banks. MY ADVICE IS TALK TO THE BANK, DOCUMENT YOUR TALKS AND OFFERS THIS IS YOUR EVIDENCE SHOULD THEY TAKE YOU TO COURT.
May 18th, 2009 at 8:08 am
First thing you need to do is talk to your lender and see if you can work out a plan to refinance your property and get current with your payments.
Generally speaking, when you are in default, the lender will notify you and serve you with foreclosure papers. If you do not redeem your property by paying all back payments and fees due, then your property will go to a foreclosure sale. It is likely that the lender will serve you with eviction papers during this process. After the property is sold, you still have one year to redeem the property by paying off the lender and the new owner. This all depends on where you live as the laws vary from state to state.
May 19th, 2009 at 5:09 am
It would depend which state you reside to begin with as every state have its own law in foreclosing property.
The government has recently announced “moratorium in foreclosure” which I strongly suggest you do some internet searching to it.
Read the copy of your mortgage/deed of trust. In the event you can’t find your copy go to the country clerk recorder and get one, of course you have to pay for it.
In that document, you will read all the agreements which may answer some of your questions above.
Like the other answerer’s said before me, try to contact your lender and find out what can be done before the escalation of foreclosure process starts.
May 21st, 2009 at 2:03 am
About 3 months, get professional advice from the C.A.B. now