What is a foreclosure?
Summary
A foreclosure is when a lender sells your property, usually because you've fallen behind on your mortgage payments, and occurs when you haven't made any payments for at least 90 days. Foreclosure may also result if you sell your property without your mortgage lender's consent or otherwise violate the terms of your loan documents.
The lender sells the property at a public auction to recover its losses, including the balance of the loan as well as the costs of collecting the debt and foreclosing on the property. In many cases, the lender will purchase the property at the foreclosure sale.
Please call us as early as possible. We'll work with you to explore any alternatives to foreclosure that may help you stay in your home. If there are foreclosure alternatives available to you, we will help you find them.
If you have received a foreclosure notice, contact us right away so that we can determine if you're eligible for any of the loan assistance programs offered by the federal government or by us. The sooner we hear from you, the more options that may be available.
No foreclosure sale will be conducted and you will not lose your home, while you are working with us to explore your options. However, the foreclosure process will continue while we review your eligibility. Please note that not all programs allow the foreclosure sale to be postponed. Be sure to ask the Bank of America specialist for details when you call.
In order to protect your rights under applicable foreclosure law, it's important that you continue to respond to any foreclosure notices you may receive. If you have any questions about the foreclosure process, contact us at 1.800.846.2222. If you do not understand the legal consequences of foreclosure, you are also encouraged to contact a lawyer or housing counselor for assistance.
The Foreclosure Process
If the foreclosure goes forward without an alternate solution, the legal process varies from state to state, but follows two basic processes—judicial and non-judicial foreclosure. A judicial foreclosure is handled as a civil lawsuit and is conducted entirely under the supervision of the court, while a non-judicial foreclosure takes place without any formal court proceedings.
In either process, you can expect one or all of the following to occur:
- The borrower is notified that the foreclosure process has begun.
- A notice of default is recorded.
- A notice of sale is recorded and mailed, and legal notices may be published in local papers.
- The house is sold at public auction.
- The borrower is notified that the foreclosure process has begun.
- Foreclosure papers are filed with the court and served on the borrower and all other parties with an interest in the property.
- Hearings are held with the court regarding the foreclosure.
- The court issues a judgment and a foreclosure sale date is scheduled.
- The house is sold at public auction.
- Legal notices may be published in local papers.
In some circumstances, you may be eligible for additional time in your home or even receive funds to help you with your move. If you have tenants living in your property, they may qualify for assistance as well. Contact one of our specialists for more information.
It’s important to realize that even if you haven’t received an official notice of foreclosure, the default notification process may begin after you are 30 days late with your mortgage payment.
Are there alternatives to foreclosure?
Call us
If you're facing a foreclosure, we may be able to find an alternative. Don't wait until you receive a notice of foreclosure. If you want to avoid foreclosure, you should consider other options as soon as you become concerned about your ability to make your payments. The sooner you call us to explore your options, the more that may be available to you.
As long as you are working with us to explore your options, no foreclosure sale will be conducted and you will not lose your home. However, the foreclosure process will continue while we review your eligibility.
In order to protect your rights under applicable foreclosure law, it's important that you continue to respond to any foreclosure notices you may receive. If you have any questions about the foreclosure process, please contact us at 1.800.846.2222. If you do not understand the legal consequences of foreclosure, you are also encouraged to contact a lawyer or housing counselor for assistance.
If you are behind on your payments, call
1.800.846.2222
8am-12am EST Mon-Fri
8am-8pm EST Sat
3pm-12am EST Sun
If you are current on your payments, call
1.800.720.3758
8am-11pm EST Mon-Fri
Explore the options below to see if one is right for you:
I want to stay in my home
Refinance
If you’re having difficulty making your home loan payments, refinancing your mortgage may be an option. It may make your monthly mortgage payments more affordable by lowering your interest rate or moving you from an adjustable-rate mortgage into a fixed rate loan. Sometimes, depending on your circumstances, both are possible.
Home Affordable Refinance Program
Part of the federal government's Making Home Affordable program, it may help you qualify to refinance your mortgage and take advantage of lower rates. It’s an option if you are current on your loan but are having trouble refinancing because the market value of your home is lower than the total you owe on it.
HOPE for Homeowners Program
The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments and are at risk of foreclosure but can afford a new loan insured by HUD's Federal Housing Administration.
Home Affordable Unemployment Program
Part of the federal government’s Making Home Affordable program, this program is designed to help homeowners who are unemployed. If you are currently unemployed and struggling to make your mortgage payments, you may qualify for a period of at least three months of suspended payments while you look for new employment.
Home Affordable Modification Program
Part of the federal government’s Making Home Affordable program, if you qualify, you may be able to restructure your mortgage payments to make them more affordable. The FHA Home Affordable Modification Program may be right for you if you have an FHA loan.
Home Affordable Modification Program Military Modification
Part of the federal government's Making Home Affordable program, if you're a military servicemember having difficulty making your mortgage payments, you may be eligible for assistance, including principal forgiveness.
FHA Home Affordable Modification Program
Part of the federal government’s Making Home Affordable program, if you have an FHA-insured home loan and you’re having trouble paying your mortgage, you may be able to arrange a more affordable mortgage payment under this program.
National Homeownership Retention Program
A Bank of America modification program for certain former Countrywide borrowers with pay-option or other adjustable-rate mortgages. Like the Home Affordable Modification Program, this approach is focused on restructuring payments to make them more affordable.
Forbearance
You either make reduced mortgage payments or no payments for a period of time (generally three months) to give you a chance to get back on your feet during a temporary hardship. The missed payments are then repaid through a repayment plan where you would resume making your normal monthly payments plus an additional amount over time.
Bank of America Home Loan Modification
Bank of America offers different modification programs which may be available to qualifying borrowers. The goal of these programs is to modify your home loan, making the monthly payments affordable and sustainable so that you may be able to avoid foreclosure.
Hardest Hit Fund
This program was created by the federal government to help homeowners in states most affected by housing price declines and the recession. If you are having difficulty making your mortgage payments and you live in a participating state, the Hardest Hit Fund may be an option.
I would consider leaving my home
Short Sale Programs
The goal of a short sale is to help you avoid foreclosure if you are no longer able to remain in your house. In the short sale process, you sell your house and settle your mortgage debt for less than the amount that you owe.
Deed in Lieu
This option lets you avoid going through the foreclosure process by signing the deed to your property over to your lender. A deed in lieu can negatively affect your credit score, but the impact is generally less severe than a foreclosure.
Home Loan Assistance Frequently Asked Questions
Yes, there are alternatives to foreclosure. A short sale or a deed in lieu may both be better alternatives to a foreclosure. Contact a specialist right away to explore all your options.
Yes. While we review your eligibility for the program, your loan will not go to foreclosure sale. When you enter a trial plan under the program, your loan will not be referred to foreclosure, and any pending foreclosure proceeding will not go to sale.
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
