Foreclosure is a word that is frightening to almost any homeowner. The prospect of losing a house is something no one wants to think about. As homeowners fall behind on payments the prospect of foreclosure often becomes a reality. Foreclosure comes after missed payments and is usually preceded by a letter from your lender telling you to either catch up on payments or a foreclosure proceeding will begin. This is called an acceleration letter.
Once your loan has been “accelerated” you can no longer “cure” or catch up the mortgage just by paying the past due loan payments. To stop the foreclosure process at this point you will have to pay not only the amount of the note or installment past due, but you will also have to pay any accrued costs, attorneys’ fees, trustees’ fees, taxes due, insurance due and interest. In other words, the amount you will need to pay to stop the lender from going forward with foreclosure is all the past due payments plus the fees and charges the lender has added to your account.
Delay works to your disadvantage
If you have fallen behind on house payments in Mississippi, do not wait for your lender to contact you about it before you do something about it. In Mississippi your lender does not have to write you telling you that they have started the foreclosure process. Notice of the foreclosure is given by advertising it in the local newspaper for three weeks straight and by posting a notice at the courthouse of the county where the land is situated.
Once the advertising time period is complete, the house is then auctioned off on the courthouse steps. If the proceeds of the sale are not enough to satisfy what you owed on the mortgage, then the lender can come after you for the difference. This amount is referred to as a deficiency. The lender may then pursue this deficiency by filing a lawsuit against you. If the lender wins and obtains a judgment against you in court, then a lien is placed on all your property in the county. The lender can then seek to seize the property you own, garnish your bank accounts and garnish your wages.
Bankruptcy can stop foreclosure
Filing bankruptcy will stop a foreclosure proceeding. A chapter 13 bankruptcy stops the foreclosure and gives you a chance to catch up the past due payments as part of the Chapter 13 plan. Filing a chapter 7 bankruptcy also stops foreclosure, but usually only stops the proceeding temporarily. If you are worried about foreclosure or are actually facing foreclosure we may be able to help depending on your specific situation. To schedule an initial free and confidential consultation call 601-853-9966.