The will begin almost immediately after you default on a .
You must understand the process before signing for your , which can really affect you if things go wrong.
What are the Timeframes?
The begins. repos process of differs across states and can vary according to the county. This means that there is no uniform timeframe. However, in most cases, Corporation will issue a written warning before the formal
Notice of Intent To Accelerate and
After you’re issued with the Notice of Intent (NOI) for payment or negotiate a loan modification., 21st Corporation will provide you with approximately 30 days to get your affairs in order and reinstate your . To do this, you will have to pay the missing mortgage
If you are unable to do so, the formal will be initiated. In some states, 21st Home has to reissue the NOI letter if the accepts a . When this happens, the timeline restarts.
At some point, the will decline to accept any from you, which is less than the total amount outstanding. This move might force the property owner into the repos process, whether or not they have the long-term ability to repay the .
Unfortunately, some borrowers fail to act upon the NOI out of ignorance or fear. Doing so will end in disaster. Borrowers MUST seek professional advice as soon as they receive the NOI.
Categories of 21st Foreclosures
The type of applicable to you can vary depending on the county or state you reside in. Regardless of personal circumstance, judicial and non-judicial foreclosures remain the two most common types of foreclosures that initiates against defaulters.
1. The Non-Judicial
Unlike judicial foreclosures, this process takes place outside of the courtroom. All that this process involves is filing the documents with either the local or state authorities. In the first month that your is overdue, will call you to determine why you haven’t paid your . They will then give you an extension of one period.
However, if you default for the third time, the appointed local trustee will issue you a Notice of Default (NOD). At this stage, you will have no option other than to clear your , or else the will accelerate it. That is when can step in and help its clients apply for a relief program.
The non- begins once the trustee to the county or state office issues you the NOD.
Notice of Default
This is the first official document that the issues once the begins. In California, can only issue a NOD after the defaults for 90 days. Some NOD information includes the property address and the borrowers’ names, trustees, and .
Additional information could include a description of the defaulted period, the date to repay the , recourse to halt the repo process, and a statement that explains that the property might be put up for sale.
Notice of Trustee Sale
A Notice of Trustee (NOTS) is issued in most states to notify the public that a property owner has defaulted on a . Along with issuing a NOTS on the property, the trustee can publish information about your default in any public document or local newspaper.
2. The Judicial
The judicial department will continue with its collection practices once the second is missed. However, this time, you will be issued with the Notice of Intent, which serves as a letter of contract breach. process can last for months or even years. Once the defaults on the first , will contact them and inquire as to when will be made. The
The will allow you to bring your current within 30 days- failure to which the judicial process on your house’s will formally begin.
At this point, you will have to choose between bringing your the a default , meaning that your property could be repossessed sooner. This makes it imperative to issue a response. current or filing an answer. Failure to perform either of these actions will give
Power of Sale
Power of Sale refers to when the asks the to grant the of the property. The judge will allow you to file a response, after which a date on your property is set. If the wins the case, the will set a date and time to sell it to the highest bidder.
is a notice that the issues to anyone interested in the property under the pending litigation. The clerk has to certify that the is filed before the county recorder records it. It is written to inform the that a claim has been entered for their house. It also informs anyone interested in the property pending litigation that they are a potential complainant against the house.
is a legal process whereby a third party makes the payments before the current owners. This third party is then responsible for collecting payments and damages from the original owners