Frequently Asked Foreclosure Questions

What is foreclosure?

Foreclosure is the legal process that a bank or mortgage company uses to force the sale of your home to repay a debt, usually the mortgage on your home. Typically a foreclosure notice is filed after three or four payments have been missed.

What if I want to keep my home, how can I save it?

The best place to start is to familiarize yourself with the forceclosure process. You have several options available to you as long as you own your home. Once your home is sold, whether by you or through foreclosure many of your options are no longer available.

Knowing what your options are, you are in a much stronger position to deal effectively with the foreclosure process. Once the foreclosure process has begun, if you're armed with the right information, you may be able to save your home from foreclosure and, in some instances, avoid the foreclosure process altogether.

How should I start?

First, contact your lender immediately, explain your situation and why you are having trouble making your payments. Provide them with your monthly income and expenses -- be honest! Do not ignore the letter.

Second, do not move out of your home. If you do, it may be considered abandoned and cause you not to qualify for assistance.

Third, contact a HUD-approved counseling agency. They have information on services and programs that could help you including credit counseling, usually at no cost.

Fourth, if you bought your home with a Veterans Administration (VA) guaranteed loan call your local VA office.

Or contact Birmingham Bancorp Mortgage. We have been helping homeowners like yourself for many years.

How long does the foreclosure process usually take?

It depends on your state and how aggressive the lender is. It could be as quick as 60 days or longer than six months.

For example, in Michigan the foreclosure notice is published in the Legal news for four (4) weeks. Then the sale is held. Once the sale is held, you enter a six (6) month redemption period during which you may pay off the loan. If the loan is not paid in full at the end of the six (6) months you are required to vacate the property.

Who can bid on my home at the sale?

Anyone, including yourself can bid at the sale. However, some states require a cashiers check in the amount of the purchase price or bid while some states require a deposit and the ability to fund within a specified period of time as required under the terms of the contract.

What happens if no one bids on my property?

The bank simply takes possession of your property, through eviction, if necessary, and then hires a real estate agent to sell the property.

Do I really stand a chance of saving my home from foreclosure?

Yes! If you're willing to fight for it. Knowing and understanding what options are available to you is the first step. The most utilized options are reinstatement of the loan, refinance or bankruptcy. Your success will depend on implementing the proper option in a timely manner.

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