Understanding the Foreclosure Process
When you reach out to us, we'll help guide you through the process, see if there are any alternatives, and offer assistance with the transition out of your house.
What is a foreclosure?
This is a legal process where your property is sold at public auction to recover amounts due to the lender holding the lien, including the balance of the loan, costs of collecting the debt, and foreclosing on the property. Foreclosure may occur when loan payments are not made, ownership of the property is transferred without the mortgage lender's consent (with certain exceptions), or the terms of the loan documents are violated. In some cases, the lender will take ownership of the property if another buyer does not bid above a certain amount.
Contact us as soon as you get a foreclosure notice so that we can see if you're eligible for any loan assistance programs. The evaluation process for loan assistance begins when we receive all the documents we've requested from you. We may not start or advance foreclosure proceedings while the loan is under review for loan assistance.
To protect your rights under applicable foreclosure law, continue to respond to and do not ignore any foreclosure notices. If you have any questions, call us at 800.846.2222. We also recommend contacting a lawyer or housing counselor for help understanding the legal consequences.
The foreclosure process
The legal process varies from state to state but follows two basic processes—judicial and non-judicial foreclosure. Both include selling the house at public auction.
A judicial foreclosure is handled as a civil lawsuit and is conducted entirely under the supervision of the court. Papers are filed and hearings are held with the court. The court issues a judgment, and a foreclosure sale date is scheduled. Legal notices may be published in local papers.
A non-judicial foreclosure takes place without any formal court proceedings. A notice of default is recorded, and a notice of sale is recorded and mailed.
If you want to avoid foreclosure, please contact us immediately at 800.846.2222 and we'll discuss your options. There are programs that may allow you to stay in the home as well as options that might help you leave the house without going through foreclosure. The sooner you call us to explore your options, the more alternatives you may have.
MILITARY PERSONNEL/SERVICEMEMBERS: If you are a member of the military or a dependent of 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 the loan is in default, a court order approval may be obtained for foreclosure to proceed. If you are having difficulty making payments, please contact the Enterprise Military Benefits Unit at your earliest convenience by calling 877.345.0693. If you are calling from outside the U.S., please contact us at 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.