The foreclosure process can be confusing. Many individuals are left not knowing exactly how the process works. Here is a month by month estimate of what happens to give you a better understanding of what happens. Remember that each situation is unique.
Month 1
Day 1 – Mortgage payment is late
Day 15 – Late fee charged if not yet paid
Month 2
Day 30 – Collection calls begin, loan is now in default status
Day 45 – Late charges accrue
Month 3
Day 60 – Lender gives deadline to bring all months current
Day 61 – If you have a conventional mortgage, the loan is sent to attorneys for foreclosure to begin
Month 4
Day 90 – Mortgage payments 1-4 are due
Day 91 – If you have a FHA mortgage, the loan is sent to attorneys for foreclosure to begin
Day 100 – Borrower receives acceleration letter from attorneys. ’30 day intent foreclose’
Month 5
Day 130 – Acceleration letter expires. Foreclosure by advertisement runs in the paper for six weeks. The borrower now has that period to pay back all late payments. Attorney fees are added to the arrear of loan
Day 144 – Occupant of the property will be served with notice of foreclosure
Month 6
Day 174 – Final day to pay back arrears
Day 175 – Sheriff’s sale occurs at the courthouse in county where property is located
Redemption Period
The redemption period usually is 6 months long, there may be exceptions. During this period the owner has a couple of options, they can either sell the house or refinance to try and remain in the property.
Day 355 – If the loan is not paid off in full or possession is not kept, the owner must surrender the property
As you can see the process takes close to a year. If you are behind on payments, the best thing to do and do it right away is contact your lender. They will work with you to restructure or modify the loan. The longer you wait, the less and less chance you have of the lender doing so.
]]>Will post a video reply in a few days.
]]>From Kara McGuire at Star Trib:
Loans in the process of foreclosure rose in the state and the nation from July through September of this year. Minnesota ranks 39th in the number of delinquencies but 15th in foreclosures started. States where speculation was rampant during the housing boom — Florida, California, Arizona and Nevada — led the nation in mortgage problems.
Although 6.98% mortgage holders are behind, 92k behind or in some stage of foreclosures is still a large number in the big picture.
Jobs. Jobs. Jobs.
]]>As the tax credit hype comes to an end, it had a good solid month of promotion from the mainstreet media and every Realtor(r) in a stones throw distance, it appears the foreclosure juggernaut continues to move on.
From CNBC:
The percentage of loans on which foreclosure actions were started rose to 1.42 percent in the third quarter, an all-time high, up from 1.36 percent in the second quarter and 1.07 percent in the third quarter of 2008.Rising U.S. unemployment propelled more mortgage delinquencies and foreclosures, a trend that will continue into next year, the MBA said.
Calculated Risk has a good write-up and along with graphs on information from the Mortgage Brokers Association predicting mortgage foreclosures to peak in 2011. Yup, a whole year to of foreclosure to sludge through again.
Anyone that thinks next year will be better is lying to themselves and oblivious to the truth.
]]>[h/t HOCMN]
]]>Bad news for short sale sellers in the Twin Cities, sales lag bank owned homes by three times. Buyers no longer have half a year to wait for the bank to figure out what the hell they want do with the asset. That tax credit ending has also many buyers not wanting to be left out of the frenzy.
Just go with the property that is already bank owned and has a turn around time of 24-48 hours in “most” cases.
From the Minneapolis Association of Realtors:
]]>Visit msnbc.com for Breaking News, World News, and News about the Economy
If ya didn’t pay the the full note, then ya don’t own it.
]]>No secret that this area is the next to and by the sounds of it… it’s just getting started. Distressed property experts in commercial real estate are popping up just like all the REO agents in Minneapolis/St. Paul sprung up in the past few. Big firms adding distressed property experts to handle the already here and soon to be inventory.
There is a lighter side according to the Star Trib:
Area real estate experts say they don’t believe the Twin Cities market will experience the surge in commercial property foreclosures already seen in some parts of the country that had higher levels of speculative development. That includes California, Texas and Florida, which now account for about 30 percent of all CMBS delinquencies, according to Realpoint
From the USA today archives on the commercial real estate meltdown:
]]>But many banks no longer hold the loans they made. Over the past decade, banks have increasingly bundled mortgages and sold them to investors. Pension funds, insurance companies and hedge funds bought the seemingly safe securities and are now bracing for losses that could ripple through the financial system.
MNHOC Foreclosures in Minnesota 1st Half 2009
The big takeaway, during the first half of the year there were 11,089 foreclosures compared to 13,591 in 2008 during the same period. With those numbers, we just might end up with less this year than last IF the pace continues.
]]>A neighborhood that has come to a grinding halt, not much going on around Jeffers Waterfront in Prior Lake. With roads not finished and rolling hills running over 300 acres, it was hard to find any signs of life of construction.
Located in Prior Lake, off Dakota Avenue and County Road 42 (Click Here For A Google Map). The area has been struggling to keep things going and homeowners wanting to sell taking a big hit on what they previously paid for.
From the StarTrib article that originally pointed out the struggling subdivision:
Jeffers Waterfront remains half-built. Some streets in the 330-acre scenic development lead nowhere. The neighborhoods are pocked by empty houses and ghost lots with mailboxes. Mainstreet is suing Wensmann’s companies to recover $23 million.
Heres is my thought on the area, there are plenty of for sale signs up and down County Road 42 selling acres for mixed use, residential or commercial. Instead of all these real estate developers trying to start another massive development that will stall out for years to come.
Why not just tag team some unfinished ones that have plenty of promise?
Jeffers Waterfront definitely has potential especially with the upscale shopping and dining sections. There isn’t much of anything after Highway 13 west that is convenient.
The master planned community has small neighborhoods within the community consisting of single family homes, detached townhomes, condos and townhouses.
8 Unique Neighborhoods
- Enclave and Ridge feature single family homes. Prices start around the low $300′s in Enclave and in the Ridge
- If you are looking for rambler style town homes, then you might consider the Shore or Pointe.
- Detached town homes in the Hollows
- Have you pick of side by side town homes in Trailhead or Parkview
- and finally the Pier with condos
If you have any questions or want to reach out you can contact me here or drop a comment below with your own thoughts about Jeffers Waterfront.
]]>