It is sad to learn how many foreclosures go down in a year. The economic crunch is more serious than it sounds on paper. Most people take up a mortgage happily, they pay well the first few years and then, in a number of occasions, they get overwhelmed somewhere by their mortgage. When this happens, the mortgage company takes the property back and they ruthlessly evict the occupants, leaving it open for someone with the ability to keep up with the payments to take it up.
In most states, the eviction process is the same. For example in Texas real estate, you go through an eviction process that is similar to other states, before you are evicted permanently.
- It starts with foreclosure
Unfortunately, when you default on loan payments, the mortgage company sends you a notice. Most of the time, the company will give you a notice with an extended time in which you should clear the payments. If you still do not pay, you get an acceleration notice to warn you of foreclosure.
At this point, you can file a bankruptcy claim, which stops the foreclosure until the court rules on viability. This can allow you to repay or restructure the mortgage. However if you pay the full amount including penalties and interests before the closing date, you can still stop the sale.
- It proceeds to the sale
You are given a 21-day acceleration period. If you do not pay within the period, the property is put up for sale. The lender sells the home for the minimum price that it can attract. If it is not sold, the lender remains as the owner. You do not have a right to buy the property after the foreclosure due. If it is bought, the new owner can file for an eviction notice.
- It ends with eviction
The stare serves you with many notices for eviction accompanied with a court date for your eviction hearing. If the judge gives the eviction ruling, you have five days to vacate from the property. You can appeal the ruling if you have a legitimate case.
Make sure that you understand the terms of your mortgage before you embark on it to avoid such cases.