Welcome to MyForeclosureOptions.net! This site has the information you need to educate yourself with the foreclosure options and alternatives that could help you save your home.
(NOTE: Click on any of the links below the header or in the “Foreclosure Alternatives and Options” section on the right of this page to learn more about the different options that may be available to save your home.)
Are you Behind on Your Mortgage or Posted for Foreclosure?
A home being foreclosed upon can be one of the most frightening situations that a person can face. Unfortunately, many people and many families face this reality every day. Attempting to work out a solution with the mortgage company prior to a foreclosure can be such a nightmare that people feel helpless. Some people are aware that a bankruptcy could potentially stop a foreclosure, but what if you can’t (or don’t want to) file a bankruptcy? Or worse, what if the foreclosure has already occurred?
Whether you think you may be posted for foreclosure soon, are already posted for foreclosure, or have recently been foreclosed upon, you may have options available to you to save your home. The goal of this website is to provide general information relating to the players, the processes, and the alternatives involved when you are facing foreclosure. This website seeks to provide you with information and resources so that you may face your mortgage company with the confidence of understanding your situation and the knowledge of what you are seeking to accomplish.
While this website provides detailed information regarding foreclosures and possible options and alternatives, each individual situation is different. Additionally, the foreclosure laws and processes vary from state to state. So while this site provides general advice relating to foreclosures and the foreclosure process, it should not be substituted for the advice of an attorney licensed to practice in the state in which the property is located.
What Type of Foreclosure are You Facing?
Before action can be taken to prevent a foreclosure, you must know what type of foreclosure you will be facing. Some states allow for “non-judicial foreclosure”, while other states require a “judicial foreclosure”. Some states allow for non-judicial foreclosure on certain types of loans, while requiring a judicial foreclosure on other types of loans.
A non-judicial foreclosure does not require court involvement. A non-judicial foreclosure is authorized by state statute and the mortgage instrument (e.g. “deed of trust”) and allows a mortgage company to foreclose on a property through the use of a public official or trustee without significant procedural or time burdens.
A judicial foreclosure by contrast is a more expensive and lengthy process by which a mortgage company must file a lawsuit seeking a court order allowing foreclosure; serve the mortgagee with the lawsuit; and have a hearing on the right to foreclose.
A primary reason why the distinction between the two processes is important is the time difference between the two. A non-judicial foreclosure can usually be accomplished much more quickly than a judicial foreclosure. This can make a big difference if you need the time to try and save your house.
Below is a list of which states are generally judicial foreclosure states and which states are generally non-judicial foreclosure states. Please note that this list relates to “normal” first liens. Some states have different rules for different types of loans. For example, Texas is a non-judicial foreclosure state for the most part, but it requires a judicial foreclosure on home equity loans. Also, some states allow for a borrower to request a judicial foreclosure after a lender has begun the non-judicial foreclosure process. Some states that allow for non-judicial foreclosure will also allow (or may even require) a judicial foreclosure, should it be necessary given the circumstances and the state’s laws. As always, use this chart as a guidepost, not as a conclusion.
While the above list gives general guidance as to which states are judicial and non-judicial foreclosure states, the easiest way to determine what type of foreclosure you are facing is to look at the foreclosure notice you have been given. Was the document sent by certified mail or was it served upon you personally by a process server or sheriff/constable? Does the document look like a letter or does it look like a legal proceeding? Does the document have a “case” number or a “cause” number anywhere on it? Does it say “ABC Mortgage v. John Doe” or “In re: Foreclosure of 123 Main St.” on the first page? Is your mortgage instrument contain a “power of sale” clause (if so, it is likely non-judicial)? The answers to these questions may not be conclusive as to whether your foreclosure is to be judicial or non-judicial, but they should give you a pretty clear indication of what you are up against.
What Is Your Objective?
The next thing that you must decide is “do I want to keep the house?” This is a question that should require some deep thought. Most people want to keep their house. There can be a big difference in wanting to keep your house and deciding that it is financially feasible to do so. If your mortgage payment calculates to 50% or more of your net household income each month, it may be a the better financial decision to let the house go through a short sale, deed in lieu of foreclosure, or similar mechanism. This is of course unless you can obtain a loan modification reducing the monthly mortgage payment.
It should be safe to assume that most people visiting a website called My Foreclosure Options are seeking to keep their homes. As such, the majority of this site will be devoted to home-saving options both pre- and post-foreclosure. There are a few sections however that explain a couple of options for giving up your house while also avoiding a foreclosure. See the “Options in Letting the House Go” section for more details on these options.