What Is the Current Foreclosure Process?<\/p>\n\n\n\n
Once you miss a payment you will initially receive a Letter to Cure which gives the borrower 35 days to cure their loan before a Notice of Default is filed. After the Notice of Default is filed you have an additional 30 days to Petition Mediation. Once that is received the mediator has up to 90 days to set a mediation date. Assuming that these time frames drag on and get extended, the foreclosure process could easily get extended up to a year. If they know the system, they may be able to stay in the property for years.<\/p>\n\n\n\n
As compared to the past two years it appears that foreclosures will increase in 2022 as various forbearance programs come to an end. Even though people have equity in their property many times that equity is pushed aside in order to avoid any additional emotional trauma they may be going through due to a break-up. Another factor is inflation. Even though people have been able to make their payments, now with rampant inflation many have to decide between staples such as fuel and food against making their mortgage payment.<\/p>\n\n\n\n
Bankruptcy<\/p>\n\n\n\n
Bankruptcy can be a choice when not only are you underwater on your mortgage, but you\u2019re drowning in many other avenues of debt as well.\u00a0 The only thing that bankruptcy won\u2019t cure is inflation.\u00a0 That is something that won\u2019t go away through the courts.\u00a0 Fortunately, bankruptcy is not the end of life.\u00a0 Once you go bankrupt you can still get credit, buy cars etc.\u00a0 The reason being is that you can\u2019t go bankrupt again for seven years.\u00a0 So, there is a safe period for creditors.\u00a0 If you have a trade in and want a new car with a 60 month loan, you probably will still be able to get that new car.<\/p>\n\n\n\n
Going to Court<\/p>\n\n\n\n
It\u2019s rare that playing the heart card in court, especially if you\u2019re a defendant, is going to work in your favor.\u00a0 Usually, it backfires.\u00a0 Judges have seen it all and don\u2019t appreciate the drama.\u00a0 Frequently a tenant who is behind in rent will drag their 3 crying kids into court in an obvious attempt to pull at the judge\u2019s emotions.\u00a0 More often than not this actually nudges the judge in the opposite direction because they instantly realize that the tenant is attempting to manipulate them.<\/p>\n\n\n\n