If you’ve gotten a foreclosure notice of default and want to know what the heck is going on, keep reading.
Basically, a foreclosure notice of default is a document that has to be filed by a lender to start the process of foreclosure. These days a lender will try to work with the homeowner so they might start with foreclosure mediation before they file a notice of default. If you are getting this they have not bothered to try to mediate or they exhausted all efforts to negotiate with the homeowner.
The foreclosure notice of default must be sent to anyone who has an interest in the property (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy). All other interested parties are defendants.
The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself. Rules are different for each municipality. Sometime they are required to put a sign on the lawn and in other cases they just have to put a letter on the door of the home. Either way they are putting out there for all your neighbors to see.
Although this can be really embarrassing to someone going through foreclosure, it’s actually a very important protection for consumers.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Connecticut.
The notice of default is a very important step within the foreclosure process that gives people with an interest in the property to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action because while the courts can be slow at some times they can move really fast before you know it, and you are kicked out of your house.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
This may sound obvious, but it’s probably the most important. Anyone in foreclosure is dealing with a lot of stress beyond just the property. These situations don’t happen overnight, and they take a while to solve. This stress can spread to family members, reflect in their job performance, and could lead to substance abuse. Before anyone gets to that point it would be good to use some good techniques to deal with the situation
You’ll get through it by practicing good coping techniques and taking good care of yourself and your family. Panic leads to bad decisions, so stay cool and calm. Go to bed on time and try to get plenty of rest, lack of sleep can cause even more stress. Practice breathing exercises. If you have an onset panic attack its good to take deep breathes for 2 minutes to center yourself.
2) Educate yourself.
Learn everything you can about the foreclosure process in your state so that you know what’s happening and what’s coming up next. The Connecticut Judicial website provides a lot of information about foreclosure and while it is overwhelming it is good to start learning about the process so that you know your rights and are not taken advantage of.
3) Gather your resources.
There’s also many non-profit and government resources available out there. You’ll want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules. The Connecticut Department of Banking Foreclosure Prevention Program, The Making Home Affordable Program (HAMP), HUD Approved Loan Counselors, and the Connecticut Fair Housing Center Foreclosure Prevention Program are all available to Connecticut homeowners facing foreclosure.
4) Learn your options.
We’re here to help you avoid foreclosure. We buy houses with cash. We can help you with short sales and even rent-back situations so you (potentially) may be able to keep living in your home. There are many more options than you think. If you want to find out more about the short sale process or our rent back options give us a call 860-704-9513 or contact us now.
5) Communicate.
The banks involved don’t want your property. They want money, and what you say matters a lot. You can slow down or stop the foreclosure process if you take the appropriate action. Usually a lender will reach out and start the mediation process. It is important to answer those calls a lot of times the lenders have options that can help you with the situations that got you to where they are starting a foreclosure. Banks only want to foreclose on a house as a last resort.
Even if they are filing for foreclosure all is not lost. You can talk to the banks and continue to work with them. In some rare cases they have stopped the process but it will take a lot of work on the homeowners part.
If you want to know more?