If you're already behind on your home equity loan payments, you're in a financial emergency. The longer you wait to deal with it, the harder it will be to catch up – if you can't make one payment now, will you be able to make two payments next month, or three the month after that?
Each state has its own foreclosure process, but no matter where you live IF YOU FALL BEHIND ON YOUR LOAN PAYMENTS YOU CAN LOSE YOUR HOUSE. To foreclose on your house, your lender must go through several steps:
1. Notice of Default. Your lender will hire someone to foreclose on your house. He or she will file a Notice of Default at the County Recorder's Office that will include your name, the lender's name, the property's address, the amount owed and the filing date. You will receive a copy of the Notice.
2. Notice of Trustee's Sale. If you don't make up your missed payments (usually within 90 days), you'll receive a Notice of Trustee's Sale informing you that your house will be sold on a certain date.
TAKE ACTION TO KEEP YOUR HOUSE!
1. If you're late on your payments, but haven't received a Notice of Default yet. Make arrangements to catch up on your payments – call your lender to explain your situation and set up a repayment plan, and contact a credit counseling service to help you work out a personal financial plan to get you out of trouble.
2. If you've received a Notice of Default. Work with a credit counselor to come up with a plan to catch up on your payments within 90 days. Also find a lawyer right away to help you. A credit counselor or your state consumer protection office can help you find low-cost or free legal help.
3. If you've received a Notice of Trustee's Sale. Talk to a lawyer about your options. You can still keep your house by making up all overdue payments. There are also other legal steps you take, such as declaring bankruptcy. BEFORE YOU TAKE ANY EXTREME ACTION THAT COULD DAMAGE YOUR CREDIT FOR YEARS TO COME, ALWAYS GET A SECOND OPINION FROM A LAWYER OR COUNSELOR.
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