If you’re concerned about your property going into foreclosure due to circumstances beyond your control, the optimum scenario would be to work with your lender for a resolution before things go any further. However, going through the foreclosure process can be made easier when homeowners understand what lies ahead, so read on as we explore what homeowners in Birmingham can expect during the foreclosure process.
Default
Mortgage lenders are aware that homeowners in Birmingham may encounter temporary financial difficulties and are often willing to work with them to prevent foreclosure. Lenders may offer a grace period or other options to help homeowners get back on track with their payments. It’s important to note that lenders have a legal obligation to follow specific procedures before initiating foreclosure proceedings. This includes sending notifications and giving the homeowner an opportunity to address the default before the foreclosure process begins. During the foreclosure process, lenders will make every effort to contact the homeowner to discuss a payment plan or other options to avoid taking further legal action. In some cases, the lender may also provide financial counseling or connect the homeowner with resources to help them get back on track financially. Ultimately, the goal of the lender is to avoid foreclosure and to help the homeowner keep their home.
Notice of Default
When homeowners in Birmingham fall behind on their mortgage payments, lenders are required to follow a specific process before initiating foreclosure proceedings. This process typically begins with the issuance of a notice of default, which is a formal document that notifies the homeowner that they have defaulted on their loan and have a certain amount of time to rectify the situation. In Birmingham, the notice of default typically gives the homeowner 90 days during the foreclosure process to pay the outstanding balance. This notice also outlines the consequences of failing to make payments, such as the potential loss of the home and damage to the homeowner’s credit score. It’s important to note that during this 90-day period, the lender will continue to reach out to the homeowner to discuss payment options and alternatives to foreclosure. If the homeowner is unable to make the necessary payments, the lender may initiate foreclosure proceedings, which can result in the sale of the home to repay the outstanding debt.
Mortgage Reinstatement
Homeowners in Birmingham who have entered the foreclosure process but can catch up with past due payments, including interest and any penalties, can stop the process at this point by working with the lender to reinstate the mortgage, then continue paying their mortgage as usual.
Notice of Sale
Once 90 days have passed after the notice of default, the next step homeowners in Birmingham can expect during the foreclosure process is the notice of sale; within 21 days, the property will be put up for auction by the trustee (the lender).
Auction
The final step in the foreclosure process for homeowners in Birmingham is the auction of the property. At the auction, interested buyers can bid on the property, with the highest bidder winning the auction. The winning bidder is required to pay for the property immediately, usually with cash or a cashier’s check. If the home does not sell at auction, it becomes what is known as a real estate owned (REO) property, and ownership reverts back to the lender. In the case of an REO, the lender may attempt to sell the property through a real estate agent or auction, or they may hold onto the property and rent it out to recoup their losses. If you have yet to vacate the premises, you can expect the buyer to serve an eviction notice to regain possession of the property. In the case of an REO, the lender may also offer assistance with moving, such as providing cash for keys to help you relocate. It’s important to note that the foreclosure process can be a lengthy and complex process, and homeowners should seek legal advice if they find themselves facing foreclosure.
Another Option
For homeowners in Birmingham facing foreclosure, there’s another option: a direct sale to local professional buyers like those at Mark Buys Houses. First, the professional buyers at Mark Buys Houses will detail the expenses and what you’d profit by listing your property, advising you of the average days on the Birmingham real estate market. Then, professional buyers from Mark Buys Houses provide you with the numbers used to make their offer to buy your home directly, which we want you to agree is fair. And we’ll provide you with a guaranteed closing date, often within days. We do this at Mark Buys Houses for two reasons. First, we want you to make an educated decision about what is best for your situation. Secondly, at Mark Buys Houses, we are your neighbors here in Birmingham, living and working alongside you, a part of the community; we want you to feel good about the deal long after you’ve left the closing table.
Mark Buys Houses
Selling directly to Mark Buys Houses can turn everything around for homeowners in Birmingham facing foreclosure; our goal is to save you time and money. A direct sale means no commissions, closing costs, or hidden fees; our policy at Mark Buys Houses is complete transparency and no pressure. And, to save you even more money, at Mark Buys Houses, we buy houses as-is for cash in Birmingham, meaning you can keep your wallet in your pocket and forget about prepping, repairs or cleaning. You can even pick the date for your closing with a direct sale to a professional buyer from Mark Buys Houses, talk to us about the arrangements that would work best for you. Call Mark Buys Houses at (205) 478-3284.