As homebuyers in Chattanooga, many homeowners have reached out to us asking questions regarding foreclosure. For a variety of reasons, homeowners in Chattanooga may default on their mortgage payments. A combination of reasons, such as failing health, the loss of a job, taking on too much debt than you can handle, or a divorce, may make it difficult to pay all of their bills.
You borrowed money to buy your property and put your house up as security if you took out a mortgage. When borrowers fall behind on their payments, the lender has the legal right to take possession of their property through foreclosure.
What Happens In The Event Of Foreclosure In Chattanooga
Is Skipping A Mortgage Payment A Big Deal?
Missing a single payment may not result in you losing your house right away, but it will put you on the path to foreclosure. The mortgage may become overdue if a borrower skips a payment or pays less than the whole amount owed.
The borrower may be contacted by the lender, mortgage provider, or collection agency to advise them of the missing payments. It may also inform you of other choices available to you to assist you prevent foreclosure and maintain your house.
A Notice of Default
The length of time it takes for the lender to give you a letter or notification indicating your loan is in default varies, but it usually takes three to six months after you miss a mortgage payment. The notification may also state how much you owe, including past-due payments and penalties, as well as how much time you have to bring your loan current. The notice might also be put on the front door of the house, with a copy being lodged with the county office.
Pre-Foreclosure Process
The lender might start the foreclosure procedure if you don’t pay your debt by the deadline. The pre-foreclosure phase can last anywhere from one to many months, during which you can prevent foreclosure by repaying the debt, selling your property, refinancing your loan, or reaching an arrangement with your lender.
Your Home Goes Up For Sale
An auction can be held by the lender, a representative of the lender, a local court, or the sheriff. Alternatively, in certain situations, the lender just takes possession of the property. If the house isn’t sold at auction, the lender will become the new owner.
As long as the auction hasn’t concluded, you may have the right to return the whole sum owed and regain your house, depending on the state. In certain jurisdictions, you may even be able to repurchase your house after it has been sold at auction.
Eviction
You may receive notification that you must vacate the property after a new company assumes possession. You may have a few days to several weeks to evacuate, and a new owner may pay you money if you move out swiftly and leave the property in excellent shape.
If you refuse to leave, the new owner may take steps to evict you violently. The eviction procedure might take anything from a few days to many months. Although you will be able to stay in the house for a longer period of time, having an eviction on your record may make it more difficult to get a rental in the future.
Foreclosure does not happen overnight
Foreclosure in Chattanooga is not a desired conclusion for either homeowners nor banks!
We Buy Houses Chattanooga
As cash home buyers in Chattanooga, we are a professional and attentive team at that has assisted many pre-foreclosure homeowners with a quick, easy, all cash offer. Our team is ready to assist you and answer any questions you may have about the foreclosure process here in Chattanooga, Tennessee. We understand that this time can be emotionally and physically taxing. We work extremely hard to provide homeowners a way to finally gain relief and get their life back on track! Call us today!
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