CHAPTER 4 What Are Your Foreclosure Options?
Because the process of foreclosure can be lengthy (between 2–12 months), you may have time to save your home — particularly if you live in a jurisdiction that provides a long redemption period. You should act quickly and according to a plan. Depending on the process, either non-judicial or judicial, you’ll have a certain amount of time to get your affairs in order. If your goal is to save your home, as it should be, you need to ensure you start repaying property taxes and homeowner’s insurance, if both are applicable. Otherwise, you will compound your problems and be hit with additional tax liens, or even a liability suit or casualty loss.
READ THE FINE PRINT (ALL OF IT)
Once the process has begun, you must carefully review all the correspondence that you’ve received from your lender. Make notes on the phone conversations with your lender, who spoke with you, when, and what the nature of the call was. You should also review your mortgage documents as an added measure. Reviewing your documents will help you determine which steps are available to take. For example, if a power of sale clause is involved, then the sale of your home to pay off property taxes or your mortgage will pay back the payments that you’ve missed. If you can work around this, and get the money some other way for your property tax payments, then you’ll be able to pay them back without having to put your home up for sale and lose it. Do some additional research into the foreclosure laws that apply to your state, and 21
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