You are a home owner! You feel that you are finally at a good place in your life. You may have a family, a steady job and your own home. Then life hits you in the face. You lose your job. A month later a family member suffers a severe accident, has endless medical bills and insurance only covers part. Your money’s getting tight, and your savings has gone down to the unthinkable. How does this affect your house?
Foreclosure may begin as early as the first missed payment. Typically, your lender doesn’t realize right away that you haven’t paid, so it may take up to 30 days for something to happen. It’s now a month later and you still haven’t paid. Now what? They are going to contact you. At this point you might only have the option of paying the full amount of two months, plus late fees, to get you back on track. It isn’t impossible to do partial payments, but typically they are going to want the amount in full. If this still isn’t possible and you run three or more months behind, real trouble is going to stir. This is where the foreclosure process kicks into full effect. In Nevada, the foreclosure process can happen judicially or non-judicially.
Judicial
This requires filing a lawsuit in order to obtain a court order to foreclose on a house. This is only used when there is no power of sale present in the mortgage or deed of trust. One year is allowed for you to redeem the property after a judicial foreclosure.
Non-judicial
This is used when a power of sale does exist. A power of sale authorizes the lender to foreclose without resorting to the Courts. Nevertheless, there are many procedural protections built into the system to ensure that home foreclosures are done properly.
Instead of having to deal with this hassle, let’s take a moment to discuss ways to prevent a foreclosure from ever occurring. First things first, always communicate with your lender. If you do find yourself in a difficult situation, let your lender know what’s going on. They may work with you to change your payment plan. It’s better to discuss options before something bad happens than be struggling to fix it after everything goes wrong.
Some situations may only be temporary. Getting laid off may only affect you a few months before finding another job. In temporary situations, the Federal Housing Authority can get in touch with your lender to create a budget plan. Forbearance is another option. The lender may agree to suspend your payments temporarily if you agree to a reinstatement, which means you would pay the amount in one lump sum at a later time. The most important thing to remember is always keeping in contact with your lenders.
If you find yourself starting to struggle financially and are worried about losing your home, get in touch with a real estate attorney at Simon Law. They will help you with the necessary paperwork and work hard to negotiate with your lender. You can contact them at 702.451.7077 or info@marcsimonlaw.com.
