What Are My Foreclosure Rights?: The Key Facts You Need to Know
Did you know that 1 out of 200 homes finds themselves in foreclosure? If you are facing this issue right now, we are here to help. Knowing what are my foreclosure rights will truly help you during the foreclosure process.
Keep reading to learn the key facts you want to know.
1. Breach Letter
Most mortgage contracts have a clause that forces lenders to send a written notice to a homeowner that is called a breach letter. This letter tells an owner when they are in default.
The breach letter has to include details about the default and also the causes of the default. It also tells you what you need to do in order to get out of default and to reinstate the loan and have it in good standing status. Every breach letter has to let you know by when you have to bring the loan up to date.
Usually, you should receive a minimum of 30 days from the date you receive the breach letter to come up with the money. Keep in mind that you have to be behind at least 120 days before foreclosure on your home can even begin. More than likely you will receive a breach letter closer to the 90th day of being delinquent.
2. Sell Your Home
If you find yourself in a situation where you can no longer afford your house, you have the right to sell it and pay the bank off instead of going into default and then foreclosure. You can search online “sell my house now” to look for a reputable company that will give you cash no matter what condition your home is in.
3. Homeowners Associations
You might not be aware that HOAs have the right to foreclose your home as well. If you fail to pay your HOA fees or special assessment fees they have legal rights to move forward with a foreclosure.
The length of time the foreclosure will take depends on the terms of your mortgage, local laws, and the lender’s motivation to foreclose on the home. It can sometimes take six months or longer with an HOA foreclosure.
4. Loss Mitigation
The servicer has to contact or attempt to contact you by phone in order to discuss your loss mitigation options under federal law. They have to contact you no later than 36 days after each delinquency you have and no later than 45 days after you have a missing payment. They have to also inform you in writing about loss mitigation options that they have available to help.
Now You Know About “My Foreclosure Rights”
Now that we answered the question “what are my foreclosure rights?” you can verify whether or not a lender is trying to pull a fast one on you. The last thing you need to do is be left without a home while your rights were not taken into consideration.
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