What is a foreclosure?

A foreclosure is the forced sale of a property and the eviction of the homeowner.  This occurs when refinancing, loan modification or a short sale does not work.
This starts with a Notice of Default (NOD) which is an official notice from the lender to the borrower that the borrower has defaulted on the mortgage.  The NOD also outlines the reinstatement period which is the time within which the borrower may reinstate the loan - making required payments and bringing one's account into good standing.
If, after receiving the Notice of Default, the borrower does not or is unable to reinstate the loan, a Notice of Sale is recorded.  The Notice of Sale explains when and where the foreclosure sale will be held.
The foreclosure sale entails the sale of a property, commonly through an auction in order to satisfy an unpaid obligation.  Depending upon state laws, this is either under the authority of the court (judicial) or through a trustee sale (non-judicial).
In many states there is a redemption period which is the time after the foreclosure sale that allows the owner the ability to redeem the property after paying the sales price, interest and other costs.

What if no one buys the property at the auction?

The property becomes real estate owned (REO), meaning it is owned by the lender.

What is the impact of a foreclosure on my credit?

A foreclosure remains on your record for 7 to 10 years.

When will a homeowner be eligible to buy another home?

In the case of a Fannie Mae loan, the homeowner is eligible for a new loan in 5 years.  In the casse of a FHA loan, the homeowner is eligible for a new loan in 3 years if the foreclosure was a conventional loan foreclosure.

What should I do if I am facing foreclosure?

You are at the right place.  With our knowledge and expertise and our sincere desire to help you, we will guide you through the many options available to distressed homeowners with the intent of avoiding foreclosure.  It is imperative that you act quickly and not ignore the demands that the lender might be making on you.  Call  Norma Skeete at 703-920-0003 now.