Ask the Table

Foreclosure is a legal process through which a lender or other secured party seeks to satisfy a debt using the property securing that debt after required payments have not been made. The process varies by state. (Source: Consumer Financial Protection Bureau)

Not necessarily.

A missed payment is not the same thing as a completed foreclosure. Mortgage servicing and foreclosure processes involve different stages and notices.

The CFPB recommends contacting your servicer as soon as you know you may have difficulty making payments. (Source: Consumer Financial Protection Bureau)

The answer depends on the loan, applicable federal requirements and state law.

For many mortgages covered by federal servicing rules, a servicer generally cannot make the first notice or filing for foreclosure until the borrower is more than 120 days delinquent, subject to applicable exceptions. (Source: Consumer Financial Protection Bureau)

Possibly.

Depending on your circumstances, your mortgage servicer may have loss-mitigation options available.

Contact the servicer promptly and ask what options you may be eligible to be evaluated for. (Source: Consumer Financial Protection Bureau)

Selling before foreclosure may be one property-related path worth exploring.

Depending on the circumstances, a traditional sale, short sale or another approach may be considered.

A short sale generally involves selling for less than the mortgage balance with the servicer’s approval. (Source: Consumer Financial Protection Bureau)

Important: A short sale can have legal, financial and tax implications. Appropriate professionals should be consulted.

A deed-in-lieu of foreclosure involves voluntarily transferring ownership of the home to the lender to avoid the foreclosure process.

It may be an option in some circumstances, but borrowers should understand the terms—including any potential deficiency—before agreeing. (Source: Consumer Financial Protection Bureau)

The answer depends on the circumstances and applicable law.

In Virginia, trustee-sale procedures include specific notice requirements. For owner-occupied residential property, Virginia law requires certain information and directs the notice to include information about HUD-approved housing counseling and legal aid resources. (Source: Virginia Law)

Home Heroes can help a Guest identify property-related questions that may need to be explored, but legal questions should be directed to an attorney.

There may be circumstances in which proceeds remain after the obligations and expenses associated with a sale are addressed, but this should never be assumed.

Whether funds exist, who may be entitled to them, and how they may be distributed depends on the specific sale, liens, documents and applicable law.

The appropriate records and circumstances need to be reviewed.

Home Heroes can help identify the property-record questions and research path that may be appropriate, while legal questions regarding entitlement or claims should be addressed by qualified counsel.

Be cautious.

CFPB warns about foreclosure-relief scams and notes that free help may be available through mortgage servicers and HUD-approved housing counseling agencies. (Source: Consumer Financial Protection Bureau)

No.

You don’t have to choose Home Heroes.

Our goal is simply to help you understand the questions in front of you and identify the appropriate next step.