People think that when they file for bankruptcy that their problems, and their debts, go away. That is not necessarily the case nor is it the case when you go through a foreclosure. Sometimes it may be tempting to walk away from a home mortgage when you can’t see the end of the road. There are alternatives available and it is best to know the full details of what happens when you do file for Foreclosures West Michigan so you are best prepared.
Most often, when people know that they can not make the payment on their home they start taking action. They either start putting away savings so that they can rent or buy somewhere else. Obviously, their credit history will be ruined for the next five to seven years, so the options of buying a home using a credit line will not be an option. People usually use the time that they are in foreclosure proceedings to save money to move.
Typically, after the first or second payment is missed on a mortgage, the lender will start to send letters threatening foreclosure. The actual notice that will mark your countdown on the foreclosure proceedings is a notice of default, a notice to accelerate, or a demand letter. Depending on what state you live in will determine the legal guidelines on which letter you will receive.
After the deadline has passed that was referenced in your demand letter, your home will be available to be sold at auction. Your home can go to the highest bidder that agrees to pay off the remainder of your debt and thus own your property. Check with your state, but legally you have a redemption period in which you have the opportunity to pay for your loan in full. At this point paying, or getting caught up on, your mortgage payments is not any option. You must pay the loan in full.
Whatever the redemption period is, typically six to 12 months, you have the chance to buy your home back. As aforementioned, most people however, use this time to live rent free while they are saving for another place to live when the bank repossess their home. Find out what the rules are from Midwest Properties Of Michigan to get the exact details of what happens after you stop making payments on your mortgage.
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