The 21st Mortgage repos process can prove challenging for any homeowner. Naturally, this means that some considerations borrowers should note before applying for a mortgage with this financier.
The foreclosure process will begin almost immediately after you default on a mortgage payment.
You must understand the process, as it can really affect you.
What are the Repossession Timeframes?
The mortgage repos process of 21st Mortgage differs across states and can vary according to the county. This means that there is no uniform timeframe. However, in most cases, 21st Mortgage will issue a written warning before the formal foreclosure process begins.
Notice of Intent To Accelerate and Foreclosure
After you’re issued with the Notice of Intent (NOI) for foreclosure, 21st Home Mortgage will provide you with approximately 30 days to get your affairs in order and reinstate your mortgage.
If you are unable to do so, the formal foreclosure process will be initiated. In some states, 21st Home Mortgage has to reissue the NOI letter if the servicer accepts a payment. When this happens, the timeline restarts.
At some point, the lender will decline to accept any payment from you, which is less than the total amount outstanding. This move might force the property owner into the mortgage repos process, whether they have the long-term ability to repay the loan. Unfortunately, there are also those borrowers who fail to act upon the NOI out of ignorance. Doing so will end in disaster. We urge borrowers to seek professional advice as soon as they receive the NOI.
Categories of 21st Home Loan Foreclosures
The type of foreclosure 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 21st Mortgage initiates against defaulters.
1. The Non-Judicial 21st Mortgage Foreclosure Process
Unlike judicial foreclosures, this process takes place outside of the courtroom. All that this process involves is filing the repossession documents with either the local or state authorities. In the first month that your mortgage payment is overdue, 21st Mortgage will call you to determine why you haven’t paid your mortgage. They will then give you an extension of one payment 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 home loan, or else the lender will accelerate it. That is when 21st Mortgage can step in and help its clients apply for a home loan relief program.
The non-judicial foreclosure process 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 lender issues once the foreclosure process begins. In California, 21st Mortgage can only issue a NOD after the borrower defaults for 90 days. Some NOD information includes the property address and the borrower’s names, trustees, and lender.
Additional information could include a description of the defaulted period, the date to repay the loan, recourse to halt the mortgage 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 mortgage. Along with issuing a NOTS on the property, the trustee may publish information about your default in any public document or local newspaper.
2. The Judicial 21st Mortgage Foreclosure Process
The judicial repossession process can last for months or even years. Once the borrower defaults on the first payment, 21st Mortgage will contact them and inquire as to when payment will be made. The 21st Mortgage home loan department will continue with its collection practices once the second payment is missed. However, this time, you will be issued with the Notice of Intent, which serves as a letter of contract breach.
The lender will allow you to bring your home loan current within 30 days- failure to which the judicial process on your house’s foreclosure will formally begin.
21st Mortgage home loan will file the complaint against you with the local court. Once the attorney files the complaint, the court will issue you a court summons. You will have a specific period to respond to the summons before the judicial process can legally commence.
At this point, you will have to choose between bringing your mortgage current or filing an answer. Failure to perform either of these actions will give the lender a default judgment, meaning that your property could be repossessed sooner. This makes it imperative to issue a response.
Power of Sale
Power of Sale refers to when the lender asks the court to grant the repossession of the property. The judge will allow you to file a response, after which a foreclosure sale date on your property is set. If the 21st Mortgage wins the case, the court will set a date and time to sell it to the highest bidder.
Lis Pendens is a notice that the court issues to anyone interested in the property under the pending litigation. The court clerk has to certify that the Lis Pendens is filed before the county recorder records it. Lis Pendens is written to inform the borrower 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.
Be sure to read our article on How Mortgages work.