Foreclosure Q and A's: Staying Informed

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Q: What does it mean to be in foreclosure? 

A: According to dictionary.com, to foreclose is to deprive 

(you) the mortgagor of the right to redeem mortgaged 

property, when payments have not been made. When you have 

missed two months worth of payments you have defaulted on 

your loan, but you are not yet in foreclosure. The 

foreclosure proceedings will not initiate until the mortgage 

lender or bank submits paper work to a prosecuting attorney. 

Q: What are my options? 

A: Once the mortgage lender sends letters informing you of 

the Foreclosure it is important that you keep your head up; 

find a way to fix things. Immediately start considering your 

options of another loan, refinancing, etc. On the other 

hand, if you know you are in over your head then selling is 

always an option. To keep from falling deep into the 

foreclosure process it is really important to weigh out your 

options, looking at your finances and what you can afford in 

the future.  

Q: Who do I turn to? 

A: You can talk to your mortgage lender about your options 

with payments adjustments, another loan, etc. If you decide 

to sell the house, there are always local investors who can 

help you get your feet back on the ground. If you decide to 

sell your home make sure you are getting help from credible 

sources and of course don't ever sign anything before 

reading it.  

Q: If I am in foreclosure, how much time do I have until I 

have to leave the house?  

A: Laws vary from state to state; in states like Georgia a 

foreclosure house for sale is advertised to the public only 

seven days after being filed. However in other states, the 

house is not publicly advertised until the 130th day of the 

foreclosure process. If you look online or go to the library 

and look up your state legislature, you will find a slue of 

detailed statutes. Do some research so you know exactly what 

timeline you are dealing with, but the bottom line is to act 

as quickly and wisely as possible.  

Q: Does the lender have the right to repossess my house, 

even though I have been paying for it all this time?  

A: Unfortunately, yes. Even though you only missed those few 

payments and had paid so many others, the mortgage documents 

or deed of trust (depending if you live in a judicial or 

non-judicial state) gives the lender the right to foreclose 

and repossess the property after you have defaulted on 

payments for a certain length of time.  

Q: What is refinancing and how can it help me out of 

foreclosure?  

A: By refinancing you are essentially taking another loan. 

The new loan is based off a new appraisal of your property. 

One benefits of refinancing is that you can sometimes get a 

lower interest rate, in turn, decreasing your monthly 

mortgage rate. However, refinancing is not for everyone. It 

can also put you at higher risk for foreclosure depending on 

a number of factors. Really do some research and talk to 

someone who can advise you well on this option.  

Q: If I lose my house in foreclosure are my chances of 

buying again lessened?  

A: If you apply for a loan on another house your past 

foreclosure will show in your credit history. This does not 

mean you will not qualify for a loan; however you are less 

likely to receive, for instance, a low down payment loan. It 

is very important to stay informed and knowledgeable in how 

to stop the Foreclosure before it happens. There are people 

who are willing to take the time and help.  

Author: Lucy Landley

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