Property law can be confusing. If you aren’t a practicing real estate attorney who has gone through years of schooling on property law, you probably feel overwhelmed when it comes to real estate issues. Contracts, zoning restrictions, foreclosure processes, evictions, buying, renting, selling, etc., can all be extremely confusing.

The foreclosure process, for instance, is one of the most complicated aspects of property law — and it’s one of the most stressful situations to deal with. Here is how the foreclosure process works:

1. Missed Payment Notices — The first step in the process occurs after you’ve missed a few mortgage payments, when your bank will send you a missed-payment notice. You should pay your monthly mortgage before or on the due date, but most banks will allow a few days of a grace period. If you show no signs of payment, however, they’ll send the notice informing you
   that you need to pay as soon as possible to avoid further action.

 

2. Notice of Default — Once your missed payment becomes more than 30 days late, your bank can send you a notice of default (NOD). The NOD, which includes your personal and financial information detailing the specifics of the missed payment, essentially means that you have to pay or the bank will be forced to take supplementary actions.

 

3. Foreclosure Notice — If your bank believes you’re intentionally ignoring them, or are unsatisfied with your responses and/or continued lack of payment, you will eventually receive a foreclosure notice. This notice simply is just to inform you that the bank has initiated the foreclosure and scheduled the sale of your home.

 

4. Loss of Home — Once someone submits a winning bid at a home auction, or no one bids and the bank retains property rights, you’ll lose all rights to your home and will have to vacate.

Approximately one out of every 200 homes will be foreclosed upon. In 2013, one out of every 96 homes went into foreclosure. It’s a scary process and can be one of the most stressful times in a person’s or family’s life. However, it’s important to remember that a foreclosure isn’t the end of the world. It’s a rough setback to swallow, but if you’re careful and consult with the right people, you can get back on your feet.

You might even have an opportunity to buy back your foreclosed property.

If your home mortgage is at risk of foreclosure, you should contact a professional attorney immediately. Contact Dijulio Law Group today for real estate assistance in California.