Receiving a foreclosure can be incredibly upsetting. Foreclosures can be complex and confusing. If you hope to save your home, you have to act. You cannot ignore the foreclosure unless you are content with losing your home. If you do ignore the foreclosure, the following things can happen:
A Default Will be Issued
If you do not provide a response to your foreclosure notice, a judge will take that as a sign that you have no desire to work out a deal to keep the house. The judge will then grant a summary judgment, and your home can be sold.
Once the summary judgment is issued, the house will go to auction. The highest bidder will win the property. In general, the highest bidder is usually the bank that holds your loan. At this time, you will have to vacate the house and find alternative housing.
The purchaser of the house will get the deed shortly after the sale. If you are not out of the house at that point, there will be a Writ of Possession posted on the house. After this happens, you can be approached by law enforcement and be forced to remove yourself and your personal property out of the house.
You Will be Granted a Deficiency Judgement
If your home is sold for less than your loan amount at auction, you will receive a deficiency judgment. This requires you to pay the difference in the amount the purchaser paid for at auction and the amount of your mortgage. If you have a line of equity or a second mortgage on your house, you also have to factor this into your deficiency judgment.
Expect to Deal with Tax Ramifications
After your house is sold in foreclosure, you will likely have to deal with some tax ramifications. While some people may get some exclusions on their taxes, it is not always the case for everyone. You will have to discuss with your attorney how to deal with your taxes after a foreclosure. Depending on the disposition of your loan, you may have to pay additional penalties.
It is scary to receive a foreclosure notice on your home. However, you cannot ignore the foreclosure no matter how upset you are. There is always a chance you can work out a last-minute deal with your lender to ultimately keep your home and work out an alternate payment plan. For more information, work with a foreclosure attorney like Jeffery A Fournier Esquire.
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