FREQUENTLY ASKED QUESTIONS

Why am I being foreclosed on?
Please see Foreclosure Process. Everybody’s situation is different, and you are advised to seek legal counsel for more information on your specific circumstances.
 
What are my alternatives to foreclosure?
Please see Borrower Resources.

Q: What should I do if I am being foreclosed on?
A: FIRST, call your lender. Your lender knows your loan and will be best able to provide you with current loan status and possibly provide you with more resources.
 
Q: What if I receive a large amount of money but not enough to cure my default? Should I wait until I have enough to pay off the entire amount?
A: Call your lender, they may work with you. It’s good to stay in constant communication when there are any major changes in your financial situation.
 
Q: Are there any alternatives to foreclosure?
A: You may qualify for a number of alternatives to the foreclosure process. You should contact your lender to discuss your situation and options.
 
Q: What happens after my home is sold at the foreclosure sale?
A: You will want to refer to the eviction process in your state.
 
Q: What is a “power-of-sale” clause?
A: It is the clause in a deed of trust or mortgage in which the borrower pre-authorizes the sale of the property to pay off the balance on a loan if the borrower defaults (fails to make the loan payment when due). The power given to sell the property is generally given to the trustee who acts on behalf of the beneficiary (lender) by recording and sending Notice of Default and Notice of Sale.

Q: Is there anything else I should watch out for?
A: Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.

Q: What is a “deficiency judgment”?
A: It means that the lender can get a money judgment from the court for the difference between the total amount the borrower owed (including penalties, fees, and costs) and the amount that the property was sold for at the auction. When a lender uses the non-judicial foreclosure process against a borrower who fails to pay on a mortgage loan for his or her primary residence, the lender gives up the right to collect a deficiency judgment against the borrower. In a judicial foreclosure, the lender may have this right.