EVICTION: WARNING SIGNS
Falling behind on mortgage payments can be a result of a variety of financial hardships, including loss of job, divorce, economic conditions, illnesses, negative equity or adjustable interest rates. If you are struggling to make your mortgage payments before the 15th of the month, more than likely your lender will asses a late fee on top of your already high mortgage payments. When they are forced to do this, that’s the first sign that you could be in trouble. If the problem is handled early enough, the problem could be an easy fix. But, If the late fees turn into a 30, 60 or 90 day delinquency, expect your lender to take steps to mitigate their losses that could result in an eviction.
WHAT TO EXPECT WHEN YOU STOP MAKING PAYMENTS
Late fees will be your first warning sign, but further delinquencies will compound your troubles and if not handled properly could affect you and your family systematically, forcing the bank to repossess your family’s home with little to no notice.
The first official notice your lender will send out is called a Notice of Intent to Accelerate (NOI). This notice alerts the home owner that the lender will begin the foreclosure proceedings if the account is not brought current within the specified period of time. If nothing is done, your lender will send out a much stronger notice called a Notice of Default (NOD). The NOD must be taken seriously. Why? Because, the NOD notifies you and the public that the foreclosure process has begun and the property will be sold to the highest bidder if no action is taken to cure the delinquency.
The recordation of the NOD prevents homeowners from making any partial mortgage payments unless the lender prearranges a payment plan with the homeowner. Otherwise, If you send in a partial mortgage payment without an arranged payment plan, the funds will either be sent back to you or the funds will be held in a suspense account until enough money is accumulated to bring the account current. Either way, immediate action must be taken or the bank will accelerate the foreclosure and record a Notice of Trustee Sale (NOS). Once the NOS is recorded a date and place is confirmed for the property to be sold at auction. In many states, the lender is not required to notify the homeowner directly that the NOS has been recorded. Many homeowners don’t even realize that they have lost their home until a realtor or sheriff shows up at the front door to carry out the eviction order.