Non-Judicial versus Judicial Foreclosure
Judicial foreclosure requires your lender to go through the legal system in order to foreclose. Most states in the US have judicial foreclosure, but some do not. Those that do not only have non-judicial foreclosure, which does not require your lender to go through the court. The process for this type of foreclosure is usually much quicker.
Deficiency During Foreclosure
If the sale of your home doesn't cover the balance you owe on your mortgage, these foreclosure laws would give your lender the opportunity to sue you for the balance after the foreclosure process was finished. You can talk to your attorney general to find out more about the foreclosure regulations for your state if you are concerned about a lawsuit.
Time Frame Before Foreclosure
In most states, you'll have a specific period of time during which you can pay your lender for the balance owed on your default in addition to any fees so that you don't end up facing foreclosure. The period is different for each state and can range from 60 day to 19 months. Check with your attorney general's office to see how much time you have from your first missed payment until your lender is legally allowed to start the foreclosure process.
Initial Public Notice for Foreclosure
Your lender has to inform you that they intend begin foreclosure. The process itself differs from state to state, but the fact remains that you need to be made aware of the foreclosure. Usually this includes posting a public foreclosure notice about the sale of your home. The attorney general's office will have details on the laws in your state for the Initial Public Notice portion of a foreclosure.
Security Instrument - Basis for Foreclosure
This is your contract. Your lender cannot foreclose on your home if they cannot prove that you violated your contract with them by defaulting on your payments. Check with the attorney general's office to see what your state legally considers a security instrument.
Redemption Period After a Foreclosure
Redemption periods are not offered in every state during the foreclosure process. If your state does offer a redemption period after a foreclosure, you will be able to buy back your home after the sale by your lender during a specific period of time. You will have to pay the entire amount you owe on the mortgage in addition to any fees incurred during the foreclosure. If you are able to buy your house during the redemption period, it is better to use that safety net before you default on your loan or at least before the foreclosure process starts.
Your best chance of stopping a foreclosure is to talk with your mortgage lender as soon as you know it will be difficult for you to make a payment. It might be better to skip a credit card payment or the payment for another bill before you default on your first or second mortgage. You may face higher interest rates or a ding on your credit but you won't run the risk of losing your home due to foreclosure.