This is the time when the mortgage company - normally the servicer - notifies the consumer that the loan is being accelerated and that a forclosure sale will occur in 30 or more days. The foreclosure sale must be advertised in the proper paper in the county where the property is located - normally for three consecutive weeks. During this stage the consumer is normally trying to do one of the following: (1) obtain a loan modification, (2) reinstate the loan, (3) obtain another loan, (4) seek advice from a bankruptcy lawyer on filing a chapter 13 bankruptcy to stop the foreclosure, or (5) contact a consumer protection attorney to see if they can sue the mortgage or servicing company for breaking the law which will have the effect of normally stopping the foreclosure sale. In summary, this is the time to review all of your options to see if you can and should try to save your home. When someone is unsuccessful in saving their home, the foreclosure sale itself happens.
The Actual Foreclosure Sale And Afterwards
The sale normally occurs at the courthouse or the more precisely on the courthouse steps. Whoever is the high bidder will be able to buy the property. Sometimes this can be investors but more often it is the company that claims to own your note right now.
The new owner will then record a foreclosure deed in the probate court of the county where your home is located. Normally the day after the foreclosure sale a letter will be mailed to you (certified and regular) from the lawyer representing the new owner informing you of the sale and advising you to leave or vacate your home within 10 days. If you don't leave within 10 days, you can lose your right of redemption. You will have a decision to make. Do you leave your home and preserve your right of redemption or do you stay in your home and force the new owner (normally your mortgage company) to sue you in what is known as an ejectment lawsuit (Stage Three below)?
The Ejectment Lawsuit
If your home was sold at the foreclosure sale and if you do not move out in ten days, you will often be sued by the alleged new owner of the property to evict you (or eject you) from the property. Often a request for any deficiency is made in the lawsuit as well as a request that the judge "declare" that you have lost your right of redemption.
As we have discussed in the context of a debt buyer lawsuit, you need to make sure you answer the complaint. Normally you will have 30 days to answer the lawsuit. Most people don't answer and therefore a default judgment is entered against them which includes being ordered out of your home. There is power in being the defendant and filing a counterclaim so definitely discuss this option with your Alabama foreclosure defense attorney.
Action Steps You Can Take To Save Your Home
Remember this - these mortgage companies are convinced you don't know your rights and even if you do you won't be able or willing to do anything with that knowledge. No matter what stage you are in, find out your options and rights. Then pick the best one and "execute it violently" - by this I mean of course that you take serious action. Don't analyze all day long and then run out of time. Find out your options and take decisive action. So, to wrap it up: (1) Where are you right now? Which stage? (2) Do you know what your options are right now? If not, request information from potential foreclosure defense lawyers in Alabama. (3) Do you have enough information to make a decision? Then make it now. Facing down a foreclosure or ejectment lawsuit is not fun or easy but you can do this with the right knowledge and mindset. I wish you the best of success as you deal with this tough situation.
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