The bank has to send you a foreclosure notice before taking your home. This is not something that should ever happen without your involvement, nor should it take you by surprise.
But when that notice comes, what does it mean for your immediate future? Is the bank declaring their intention to instantly take the home back, meaning you have to find somewhere else to live as soon as possible? This is a fear many people have as they consider the future for themselves and their families.
Foreclosure takes time
Fortunately, you don’t have to worry about immediately losing the house. Foreclosure does take time. There are both federal and state laws that govern the process. For instance, from the time you miss a payment to the time that the lender can begin a foreclosure, federal law states that at least 120 days must pass.
Even after you get the notice, there could be months before everything concludes. It’s a long process, and you may even have ways to delay it further. For instance, say you opt to declare bankruptcy to see if you can fix your debt and keep the house. Doing so puts an automatic stay on the foreclosure, regardless of the outcome of the bankruptcy case. If that case takes months, the foreclosure has to wait.
When you get that notice, don’t panic. Nothing will happen right away. Just take the time to consider all of your options as you move forward. One of the best steps you can take, however, is consulting with an attorney who understands the debt-relief options available to you. Bankruptcy may allow you time to regroup or even a way to save your home.