Foreclosure Notice: How to Understand It & What to Do When You Receive One


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When a Foreclosure Notice Will Be Issued by Your Lender

Usually, a lender will issue a foreclosure notice as soon as you miss a couple of mortgage payments (2, no more than three in most cases). What you will receive in the mail is a notice of default (aka foreclosure notice). This is the initial step in the foreclosure process; it must be filed, presented and/or posted for the process to begin.

As an aside, a foreclosure notice can provide  provides real estate investors with a wealth of information that can assist in the overall investment process. So whether you’re an investor — or a homeowner who’s received a foreclosure notice — following are the different components of it.

Foreclosure Notices of Default: What They Consists Of

A case or reference number on your notice of foreclosure notice: With this, you can easily search for information in foreclosure data bases. This can simplify the process of searching for properties to purchase, especially for professional foreclosure investors who target numerous properties at the same time.

Insertion date: This is the date of the publication in which the foreclosure notice has been posted.

County: The is simply the county in which the foreclosed property is located. This information is very important because when you know the county, you know which county’s register of deeds office to visit. You will also be able to research the title and mortgage information related to the property using this info. 

Legal lot, subdivision, and city: This is the legal legal description of the property, which makes it easy for investors to locate the mailing address of the property.

FYI, if you’re a homeowner in foreclosure — just in case you didn’t know — foreclosure inforamtion is a matter of public record. And this is why you’ll start receiving notices from everything from bankruptcy attorneys to refinance companies.

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Name of the mortgagor: The mortgagor is the homeowner, typically the borrower.

This information on the notice of foreclosure is useful to investors if they, for example, want to contact the homeowner in pre-auction sales.

Name of the mortgagee: The mortgagee is the lender who holds the note on the property; the entity that is responsible for  foreclosing on the property.

Amount owed on the mortgage: The exact amount you as a homeowner owe on the mortgage is only accurate on the date the foreclosure notice is published. Even though the amount may change between the time the notice is published and the time the sale occcurs (eg, a foreclosure auction), as an investor, good records of the amount owed on the mortgage stated on the notice will provide you with an estimation of the actual opening bid amount.

Interest rate of loan: That’s information you need to know when you track down the amount owed on the property. When the mortgage remains unpaid, the loan amount will increase over time as interest will be added up to the loan amount. This can help you track the amount owed as it increases over time.

The mortgage company’s attorney: If you have the mortgage company attorney’s name and contact information on hand (which is conveniently provided on foreclosure notices), you can contact the attorney and check the sale date, opening bid and other related information.

As a homeowner, this gives you time to formulate a plan of action — eg, do a short sale, prepare a request for cash for keys, do a deed-in-lieu of foreclosure, etc.

Length of the property’s redemption period: In some areas, homeowners have the rights to redeem the property (aka right of redemption) in a certain period. If you are new real estate investor, it’s a good idea to avoid properties that have a redemption period. If you decide to invest in a property like this anyway, be sure to verify the redemption period when you do your research (check, double check and triple check!).

About the Author: This article appears courtesy of guest author , with additional input by Yuwanda Black, Editor, ForeclosureBusinessNews.com. To learn more about real estate investments, visit http://todaysrealestateworld.com/.

Received a Foreclosure Notice?

Following are some links to some informational articles that can help you decide what your next step should be if you’ve received/are anticipaing receiving a foreclosure notice of default.

Stop Foreclosure: More than 90 Days Late on Your Mortgage? Here’s a Foreclosure Prevention Program for You

Timeline For Foreclosure In All 50 States  

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

Short Sale vs. Foreclosure: What’s the Difference between Them and Which One Hurts My Credit (FICO) Score More?

5 Banks Settle Foreclosure Lawsuits — How It Can Save Homeowners Facing Foreclosure Thousands of Dollars

“Cash for Keys” Can Help if You Have a House in Foreclosure & Can’t Afford to Move

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free

Stopping Foreclosure: What the “Produce the Note” Defense Is & How It Can Help You Save Your Home from Foreclosure (Or at Least Stall)

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep Their Homes?

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Copyright © 2012 Yuwanda Black for Foreclosure Business News. Legal Disclaimer: The information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified professional (eg, attorney, accountant, real estate agent, etc.)  — in your jurisdiction — before taking any action based on the information listed here.

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