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Foreclosure Information & Alternatives

Understanding the foreclosure process. Knowing what to expect can better prepare you to leave your property and move forward. We'll help guide you through the process and, if we can't find an alternative solution for you, offer you assistance with your transition out of your property.

What is a foreclosure?

Summary

Foreclosure is a legal process in which a lender sells your property to recover its losses, including the balance of the loan and costs of collecting the debt and foreclosing on the property. Foreclosure can occur for any of the following reasons:

  • Failing to make loan payments
  • In some cases, transferring ownership of your property without your mortgage lender's consent and paying off the debt
  • Otherwise violating the terms of your loan documents

The lender may sell the property at a public auction to recover its losses. In some cases, the lender will take ownership of the property if another buyer does not bid above a certain amount.

If you receive a foreclosure notice, contact us as soon as possible so that we can determine if you're eligible for any loan assistance programs. The sooner we hear from you, the more options you may have.

We won't start or advance foreclosure proceedings while your loan is under review for loan assistance. The evaluation process begins when we receive all documents we've requested from you. No foreclosure sale will be conducted and you won't lose your home during the evaluation. Be sure to ask for details when you call.

Important: In order to protect your rights under applicable foreclosure law, continue to respond to any foreclosure notices you may receive. If you have any questions about the foreclosure process, call us at 1.800.846.2222. We also encourage you to contact a lawyer or housing counselor for help understanding the legal consequences of foreclosure.

Understand 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.

  • 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
  • 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
  • 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

In some circumstances, you may be eligible for additional time in your home. In addition, you may be eligible to 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.

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 alternatives you may have available to you.

What if I've received a foreclosure notice?

If you're behind on your payments, call
1.800.846.2222

Mon-Thu 8 a.m.-midnight ET
Fri 8 a.m.-10 p.m. ET
Sat 8 a.m.-5 p.m. ET
Sun 3 p.m.-midnight ET

Explore the options below to see if one is right for you:

I want to stay in my home

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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, this program may help you qualify to refinance your mortgage and take advantage of lower rates. It's an option if you're 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 NOW

This alliance helps homeowners who are having difficulty making their payments and are at risk of foreclosure by coordinating homeowner outreach events to reach as many borrowers who need help as possible.

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're 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.

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 in which you would resume making your normal monthly payments plus an additional amount over time.

Home Affordable Modification Program

This program is 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.

FHA Home Affordable Modification Program

This program is 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.

Home Affordable Modification Program Military Modification

This program is 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.

Bank of America Home Loan Modification

We offer 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're 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

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Short Sale Programs

The goal of a short sale is to help you avoid foreclosure if you're 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.

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MILITARY PERSONNEL/SERVICEMEMBERS: If you or your spouse is a member of the military, please contact us immediately. The federal Servicemembers Civil Relief Act (SCRA) and comparable state laws afford significant protections and benefits to eligible military service personnel. Please note, however, that military service and/or SCRA qualification may not necessarily prevent foreclosure. If your loan is in default, a court order approval may be obtained for foreclosure to proceed. If you are having difficulty making your payments, please contact the Enterprise Military Benefits Unit at your earliest convenience by calling 1.877.345.0693. If you are calling from outside the U.S. please contact us at 1.817.245.4094. Both numbers are open 24 hours a day, 7 days a week to discuss the various home retention options that may be available.