Foreclosure listings have skyrocketed in the last few years; homeowners in every state are having trouble making their mortgage payments. The result of the economic crisis has affected people in all walks of life, and this has resulted in missed payments, repossessions and millions of homes going into foreclosure proceedings. The sluggish home sales have caused the value of all homes to plummet. These decreased home values are causing financial difficulties in all sectors.

Foreclosure is the term used when a lender has filed a public default notice against the homeowner/borrower because they have stopped making payments on their home loan. The home is the collateral for the loan and when the lender files the papers for non-payment, the home in question will be seized by the lender unless the homeowner can get the money needed to reinstate the loan.http://www.realtytrac.com/foreclosure/overview.html

All 50 states in the USA are investigating claims that lenders used faulty or fraudulent paperwork in order to evict home owners who were behind on their payments. While a national freeze or moratorium is not officially in place, many lenders are reducing the number of houses that are being seized.http://www.foxnews.com/politics/2010/10/17/foreclosure-freeze-drag-property-values-housing-chief-warns/ In some states, foreclosure auctions have gone down by 42 percent in response to this issue.http://www.bloomberg.com/news/2010-10-29/foreclosure-freeze-cuts-home-sales-supply-in-states-hardest-hit-by-slump.html

Some commentators have also expressed concern that a freeze on foreclosures could block new home buyers from entering the market, which would contribute to the number of vacant homes on the market and may pull down overall residential real estate prices.http://www.foxnews.com/politics/2010/10/17/foreclosure-freeze-drag-property-values-housing-chief-warns/

• Every 90 days, 250,000 new homes enter into foreclosure. This mean that every year 1,000,000 people or more will face losing their home to foreclosure.http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf

• More than half of all mortgage holders did not understand the terms when they signed the mortgage contract. The excitement of buying a new home, and all of the paperwork that goes along with it, can make most new homeowners forget to read the terms and understand exactly what they are signing. Ballooning payments have caused a lot of people to end up paying more than double the monthly mortgage payments after one to three years of payments.http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf

• Only 40% of homeowners having trouble paying their mortgage know about the various programs and services available to them that will offer assistance.http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf

• Embarrassment will be the reason some people will lose their home. They are too ashamed to ask for help so they let the days and months slip by until it is too late to do anything to save their home.http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf

• When you buy a foreclosed home, you will save an average of 28%. Homes that are on the market after a foreclosure can save the buyer thousands of dollars compared to the price of a home that was not foreclosed.http://blog.foreclosure.com/category/national-foreclosure-data/

A foreclosure can be devastating to the people losing their homes. Most of the time, the lender is also taking a financial loss because of the missed payments and other costs associated with the foreclosure. In most cases, the homeowner will have to vacate the premises if there is no other resolution to the problem.

The basic principle to foreclosure is that if you stop making your mortgage payments and the lender files the necessary papers to get the property back, you will have to either pay the money owed or move out. There is a specific procedure in the mortgage foreclosure process that can give the homeowner time to find a solution to continue to make payments.http://en.wikipedia.org/wiki/Foreclosure

The lengthy timeline of the foreclosure process allows the owner to look for financial assistance that can help to (temporarily) stop the foreclosure. If you do want to try to keep your home, you have to take action quickly; the longer you wait, the less likely you will be able to do anything at all.

If you are interested in buying or selling foreclosed homes, you can attend bank foreclosure auctions to see which properties are available. There are listings you can buy that will show you all of the homes that have been foreclosed.http://www.realtytrac.com/foreclosure/overview.html

The importance of making a lender produce the original note is discussed. When a home owner purchases a house, they sign an agreement binding the loan. However, many banks and lending institutions have lost or misplaced these agreements. It may be considered unethical or illegal to repossess a home without an original copy of the agreement, and some banks have even committed fraud in order to attempt to circumvent the rules.

What Happens After Foreclosure?

After your home is sold, you will still have some time to find somewhere else to live or even keep your home. If you can prove that you can begin to make regular payments and the problems that initially caused you to go into arrears are no longer an issue, the lender may be willing to do a loan modification or you can get relief through a forbearance agreement.http://loanworkout.org/2009/07/what-happens-after foreclosure/

What is The Foreclosure Bill?

The Military Homeowners Assistance Program (HAP) was amended to include assistance to military homeowners who are not able to meet their monthly mortgage obligations. The bill also offers assistance when the homeowner needs help selling an existing home. This new bill is set up to help all military personnel and federal government employees affiliated with the Armed Forces.http://loanworkout.org/2009/06/military-homeowners-assistance-program/

How Long Can I Live In My House After Foreclosure?

The length of time you are allowed to remain in your home is dependant on several factors, the first being the laws that govern your state and county. In some states, you can stay for more than 18 months but you can expect to owe penalties and fees including, but not limited to, attorney fees and recurring mortgage late fees.http://loanworkout.org/2009/06/how-long-can-i-live-in-my-house-after-foreclosure/

How Does Foreclosure Work?

Here is a short explanation. Approximately 16 days after you miss a payment, you are charged a small late fee. After 30 days, you are in default on your loan. This will start the recurring loan percentage late fees that grow as the days go by. At 60 days late, you are given 30 more days to make payments. At 90 days late with no payments, the loan goes into foreclosure, and attorneys get involved. Near 6 months of no payments, your home is scheduled to be sold. This is what happens when your home is foreclosed on.http://loanworkout.org/2009/06/how-long-can-i-live-in-my-house-after-foreclosure/

Can Bankruptcy Stop Foreclosure?

Filing Chapter 13 bankruptcy protection will stop foreclosure on your property, for a while, even if the foreclosure is in the final stages. But, you will have to sign a repayment plan and after that, all mortgage payment are required to be paid in full. Chapter 7 bankruptcy will have no effect on houses in foreclosure. http://www.loansafe.org/can-bankruptcy-stop-foreclosure

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