Being served foreclosure papers can leave homeowners feeling devastated. A foreclosure can sometimes leave you feeling paralyzed. One of the worst things you can do, however, is to not respond to the foreclosure. Unfortunately, many homeowners fail to make any effort to save themselves from a foreclosure.
A foreclosure is a time-sensitive process, and you and your attorney may be able to work out a deal in which you can keep your home. However, you have to take the initiative to get the process started. The following are just a few of the things that will happen if you ignore your foreclosure notice.
You Will Run Out of Options
When you receive your foreclosure notice, you only have a limited time to respond. If you do not retain an attorney as soon as you receive the notice, you will already be running behind in the process because it will take several days before you can even get in for an initial consultation.
What you need to remember is you are not absent of any rights just because you are behind on your mortgage and have been served a foreclosure notice. You still have a defense. Your attorney can help you work on your defense, but only if you act quickly.
The Judge Will Issue a Default
If you do not respond to your foreclosure, the judge will take your lack of response as a sign that you are not going to make a case to keep your home. When this happens, the judge will grant a summary judgment against you. Your home can then be sold at any point after.
The House Will be Sold
Once the judge issues a default judgment against you, your home can then go to auction in which the highest bidder will receive the house. The highest bidder is most commonly the bank that holds your mortgage. Once this happens, you have to make arrangements for another place to live.
The buyer of your home will receive the deed within a few days after the sale is complete. If you do not vacate the home by then, a Writ of Possession can be posted on the home. At that point, a sheriff can remove you, your family, and your personal property from the home.
A Deficiency Judgment Is Granted
If your home is sold for a lower price than what you owe, the judge will grant a deficiency judgment. You will then have to pay your lender the difference between the sale price of your home and your loan amount. If you have a second mortgage on the home or a home equity line of credit, this will also have to be factored into your overall repayment.
You Will Have to Face Tax Issues
Once your home is sold in foreclosure, you could face a variety of tax implications. While some people could have some exclusions, this is not the case for everyone. You will need to find out how you will need to deal with your taxes associated with the foreclosure. It is best if you sit with your accountant and attorney to work out these details.
It is not unusual for many homeowners to freeze when they receive a foreclosure notice. You may feel a variety of emotions that can prevent you from taking action. Fortunately, you may still be able to save your home as long as you get started as soon as possible.
If you need assistance with a foreclosure, please contact us at The Madden Law Firm Attorneys at Law. We are happy to help you reach a conclusion with your home.
