Payments on Forelcosed Homes
If you are behind on your mortgage payments and your home ever makes it into foreclosure because you did not make your house payment on time, you run the risk of getting high fees that are associated with the home going into foreclosure. Payments made to your lender may easily be returned to you, because there are certain procedures that need to be followed 1st before any removal from foreclosure. Always check with your mortgage company before making payment on your home if it is foreclosure, because if you miss a step it could cost you your home.
We have a wide range of foreclosure laws that governs when and how a home can go into foreclosure, and what steps will occur, and at what point. These laws gives the amount of time your property can stay in foreclosure before it can be auctioned off to try to recoup any loose the mortgage company may face. Depending on which state you property is in, the time that your home can sit in foreclosure will vary tremendously from state to state. Take New York for example, the property can sit in foreclosure for close to a year before the lender can auction off the property to offset any losses and try to recover their investment; on the other hand, in Texas a property can stay in foreclosure for 2 month before it goes to sale if there are no arrangements to pay or if no payments are made on the property. The eastern states tend to sit longer in the foreclosure process without going to sale, even if the homeowner is just squatting on the property and still has not made any payments. It also depends on if the foreclosure proceedings, whether it is a judicial or non-judicial state, See http://hstrial-oswingrant.homestead.com/ForeclosureInformation.html for more information on your states procedures.
Before making your house payment if it is in foreclosure, you are suppose to discuss it with your lender 1st , that way you can be on the same page. If you do not discuss what type of payment is needed and how much to pay on your account, you may find out that even after you have made the payment, you are still at risk of loosing your property. The reason why your payment has to be arranged is because if you are not paying your full past due account balance, including all of your late charges, attorney’s fees, and/or escrow then your are not eligible to get your home out of foreclosure. And if you can not afford to pay the full balance on what you own, you would need to make arrangements to set up your account on a re-payment plan, and pay it over an extended amount of time with your mortgage company. Lets say, you owe $15,0000 on all your outstanding balance including all your late fees, attorney’s fees and/or escrow and you only mail in $10000 to cover the amount due; chances are that money will be sent back to you, unless you are communicating with your lender and they are aware of what it is that your are sending in, and the rest of the outstanding amount is being set up on a re-payment plan. If not, you are not taking care of your full balance by making the arrangements to take care of your remaining outstanding balance. So your lender does not have to take the money if it is a partial payment with out the necessary arrangements, and they can sell off your property to try to recover any losses. All you have to do is call your lender and make some arrangements, you will be surprised to see how much they might be able to work with you if you are low on funds.
You would not want to send in a partial payment thinking it is enough to cover all of your fees, and you are wrong about the amount due. Then your house goes to sale, especially to a 3rd party that really wants the property for investment or to live in in. You would find your self in an up hill battle that could cause you to loose your home for good, and find your payment being returned back to you; all because you did not take the time to call and find out exactly how much was needed to pay or arrange to pay. If you are not paying off your total balance and your are doing a re-payment plan, make sure you do what is required to stop the sale of your property and get you out of foreclosure. Often, papers need to be signed if you are unable to pay your total amount due. Make sure that you sign the papers, and call to check to see if they received your signed papers for any arrangements that you have made.
