| This article is all about the US mortgage | | | | of thousands of dollars in cash within 60 days |
| foreclosure process, as opposed to the | | | | woke me up a bit... As I'm certain you could |
| foreclosure process in other countries, nor even | | | | imagine. |
| property tax foreclosures. | | | | However, whereas the Notice of Default told all |
| Since I went through a very ugly home mortgage | | | | the investors to begin calling my house, the Notice |
| foreclosure myself I figured I could offer my | | | | of Trustee's sale seemed to have the opposite |
| story on this page and see if I can help anyone | | | | effect! Now that I owed my lender in full, |
| else in America that could be going through the | | | | investors stopped calling & I was left with |
| same tragic story I did. | | | | very few options. |
| First I want to point out that every state in the | | | | I later discovered that they stopped calling |
| US has somewhat different foreclosure | | | | because this is the most expensive time for them |
| procedures, and I am only sure about the | | | | to purchase my house. They were better off to |
| foreclosure procedures in California. However, I | | | | wait until the sale and get it for less at auction. |
| won't mention anything specific to California law, | | | | One other option I considered was to file for |
| so that this page can help you regardless of which | | | | bankruptcy. I talked with a bankruptcy lawyer and |
| state you reside in. | | | | the list of hoops I had to jump through to file |
| What I did Wrong: | | | | bankruptcy and keep my house was so long that |
| I let my credit card bills and medical bills grow out | | | | I knew I'd rather lose the house. I'd basically be |
| of control until I could no longer afford my | | | | forced to inventory everything I own, give up |
| mortgage payments. I was earning what I | | | | everything they wanted, and still make payments |
| thought was enough money, and I even started | | | | to my mortgage company, and to the courts and |
| out with a respectable credit record, so I | | | | then the lawyers too! Trading one big bill for three |
| confidently told myself that I could catch back up, | | | | smaller bills was not the solution I was looking for. |
| justifying that it's not really a bad problem. | | | | I do not know if the foreclosure procedures in |
| What made it worse: | | | | your state will grant you exactly 60 days from |
| Once I got to the point where I would either be | | | | the notice of trustee's sale too, but in my case it |
| making a mortgage payment or buying groceries | | | | went by very quickly. Exactly 60 days later I left |
| next month, I did exactly what all good | | | | behind that house forever! |
| Americans are bought up to do, turn to my bank | | | | At least during this awkward time period I could |
| and refinance mortgage. | | | | (thankfully) stop paying the lender altogether, and |
| The interest rates on this new loan were a little | | | | save my remaining cash for rent at a nearby |
| better than my existing one (1.5% lower) so I | | | | apartment. |
| easily justified to myself that I would be better | | | | Word to the wise: Apply at the apartment you |
| off, giving up basically all of the money earned in | | | | want within 1 week of getting your Notice of |
| my home to be able to make smaller payments. | | | | Trustees' sale. Because soon after that your |
| I was DEAD WRONG. | | | | credit report will be completely ruined! |
| These new payments were not much smaller, | | | | I did not apply in time, so when I finally did so, I |
| despite first appearances. For those of you who | | | | was told that my credit score was way too low. |
| are aware of the housing prices in California | | | | No desireable apartment in town would have me. |
| around 2004, then you will be able to guess how | | | | Luckily I had a friend who ran an apartment |
| huge my payments were, even at at their | | | | complex and let me move in without a credit |
| smallest. | | | | check. I have no idea where I'd be if he hadn't of |
| In no more than Six very quick months I was | | | | stepped in then. |
| right where I started before I re-financed, except | | | | Anyway, after about 2 weeks from getting the |
| that I had no equity in my home anymore. -Just | | | | Notice of Trustee's sale letter, my house's |
| the way my lender wanted it. | | | | Auction was listed in several local newspapers... |
| With no other bright ideas, I began sending in a | | | | And then that horrible, horrible sign went up in my |
| smaller payment size than the minimum. I mailed | | | | front yard! |
| them two half-sized payments and the bank didn't | | | | Let me tell you, there are few things in life as |
| seem to be concerned. They didn't do anything | | | | difficult to go through as putting up with that |
| out of the normal routine plus adding late charges. | | | | foreclosure sale sign in your yard... It is a giant |
| In their records these smaller-than-usual sized | | | | beacon telling all of your neighbors, and everyone |
| payments were recorded as no payment at all, | | | | passing by too, that a complete failure lives inside |
| despite them accepting the money, of course. | | | | this house! |
| I then made the 3rd payment in full, but my | | | | I spent most of my last weeks searching |
| record of payments indicated that it just went | | | | frantically for a place to live and a place to store |
| towards the 1st missed payment and a few late | | | | all of my stuff. I even had a garage sale to get |
| fees. I was clearly not on my way to catching up | | | | rid of about half of everything I owned, so I |
| like this. | | | | wouldn't have to spend a fortune storing it. |
| At the end of the 4th month, while the bank | | | | Finally, the day before the trustee's sale, (auction |
| records that I have missed 3 whole payments, I | | | | eve) my local sherrif came by personally and let |
| received the nasty "Notice of Default" in my | | | | me know that it was time to go. With a Warrant |
| mailbox. | | | | in one hand and the other resting on his pistol, I |
| What happens during foreclosure | | | | didn't argue. |
| The Notice of Default, the letter sent by your | | | | I wasn't completely ready yet, but out I went. |
| county on official state letterhead, & also | | | | There were still many boxes, my refrigerator, |
| filed at your county courthouse and shown to real | | | | and my bed inside, but I was ordered to leave |
| estate investors everywhere, is the official | | | | the premises immediately. |
| beginning of the foreclosure process. Sending in a | | | | A moving company was on call from the sherrif's |
| single payment check after getting your notice of | | | | department. Their big trucks came within hours |
| default does NOT make the foreclosure process | | | | and threw all the remaining stuff into the back of |
| go away, that only stops when you get fully | | | | their trucks and I didn't even see it for a week |
| caught up, up to date, including all fines, too. | | | | until it was delivered to me, slightly battered... With |
| In other US states the time period between | | | | a beefy-sized bill for doing it, of course. |
| missing the 1st payment and getting the Notice of | | | | The day of the sale came and went and I was |
| Default letter can be just as short as I've said | | | | told that my lender kept the house, not selling it |
| here or as long as 6 months, but it always results | | | | at auction because there was a lack of bidders |
| in getting that horrible letter, and then watching | | | | showing up. After all of that, no one really wanted |
| your phone start ringing off the hook. | | | | my house in the first place. |
| This is where it starts to get hectic. Real estate | | | | For a whole year the house sat there with a for |
| investors began calling me daily to offer a small | | | | sale sign in the yard, and a price tag too high in a |
| amount of money for my property. -Not much, | | | | down-turning market. Finally the bank cut it's price |
| mind you, only enough to pay off my mortgage | | | | well under what I owed on it and sold it to get it |
| note, but not one penny more. | | | | off their books. |
| If I had taken their offer I could have gotten out | | | | I know that they would have made much more |
| free and clear, without a horrible foreclosure scar | | | | money allowing me to stay, but I had given them |
| across my credit record. But I guess my pride | | | | a reason to believe that I might not pay what I |
| wouldn't let me take the money and run. | | | | owed, at least not on time. |
| To be completely frank. I also had an advanced | | | | So here I am a few years older and wiser, and |
| case of denial. If you had told me that only two | | | | my credit score is so low that I can't get a loan |
| percent of people who get their Notice of Default | | | | for bubble gum. I'm told that it will stay that low |
| actually get caught up again, I would have replied | | | | for an entire decade. So until then I'll be living in |
| that I was SURE I'd be in the two percent. | | | | second-rate apartments and lucky to drive the |
| To make a long story shorter, I was not. That | | | | same old car. |
| denial attack was my Achilles' heel. As was my | | | | The worst thing now really is the lack of freedom. |
| brainless, manly pride. | | | | I may be used to it now, but I really do feel like a |
| For a few more months I worked hard to | | | | second-class citizen who isn't allowed to follow his |
| borrow enough money to catch up again, | | | | dreams here in the "land of opportunity." |
| surviving on nothing else but macaroni and cheese | | | | If I want to start a business or do anything at all |
| for two meals every day and even joining the | | | | that requires a look at my credit record, I'll be |
| office car pool to save money on gasoline. | | | | told "no" instantly. |
| While inside the Notice of Default stage, making | | | | The bottom line |
| my house payments seems to have been | | | | So, dear reader, I hope that you have found |
| completely useless. Doing so only had the effect | | | | something from my story to take with you. In |
| of buying a little bit of time... While the fees built | | | | fact I feel that mortgages in general are always a |
| up higher and higher. | | | | horrible deal and even if you manage to finish |
| Then one scary morning they were too large. As | | | | paying for your mortgage, you can still be |
| I read the "Notice of Trustee's Sale" letter I finally | | | | foreclosed on for not paying your taxes on the |
| started to see some reason. The letter told me | | | | property underneath it. -And so will your children, |
| (and every investor in the country, since it was | | | | and theirs too. Property tax foreclosures take a |
| filed at the county courthouse too) that I had 60 | | | | little longer and the amounts aren't as high, but |
| days to pay, IN FULL, or be kicked out! | | | | they still happen to 60 people every day in |
| No, not paying my current bill in full back to where | | | | America. |
| it should have been... But to pay the ENTIRE | | | | So the lesson for the day? Get used to |
| MORTGAGE off in full! | | | | apartment life, and keep your credit record |
| The Bank obviously wanted my house for | | | | spotless. Surviving the Mortgage foreclosure |
| themselves. I figure it is more valuable to them to | | | | process was the worst thing that has ever |
| sell it to someone else than let me keep making | | | | happened to me, and some days I wish I didn't |
| (albeit not always enough) payments on it. | | | | survive it at all, in fact. |
| Realizing that I have to cough up many hundreds | | | | |