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How does this program help me?

If all else fails, and you are unable to make your payments, the lender will start the legal procedure known as foreclosure. In this process the lender is notifying all parties that a breach in the contract has occurred, and they are seeking full title to the house, so they can sell it and re-coup as much of their losses as possible.

You know the process has been started, and the clock is ticking, once a Notice of Default is filed against the property. You will be given notice of this event. Once the Notice of Default is filed, you usually have a little less than 4 months before you have to move out.

Who should I contact?

It is wise to keep in contact with your lender so you can keep track of what stage they are at in the process. You don't want to wake up one morning to a law enforcement official giving you 15 minutes to gather your things! Also, don't ignore the correspondence from your lender. This correspondence will also help you stay in touch with the amount of time you have left to move.

We highly recommend that you speak with a Real Estate attorney and/or a bankruptcy attorney! Click here for a nationwide lawyer referral service or ask friends and family for recommendations. There are legal protections and consequences to a foreclosure and you need to be aware of them. Each state has different rules and there can be recourse for a lender to come after you for losses in the future. Also, there are tax consequences, so be sure to meet with your accountant/tax preparer.

What should I expect?

In most states this process takes 120-150 days to complete. Foreclosure is a fairly automated process for the lender.