If you are like many Americans today, you might one day have to face a mortgage foreclosure. March 2008 sailed in with a evidence of 900,000 houses going through foreclosure. These staggering numbers could panic anybody; homeowners, investors, politicians, and economists. There are ways to avoid losing the home you worked hard to acquire.
The organization called Twin Cities Habitat for Humanity Mortgage Foreclosure Prevention Program (MFPP) for example is one of the organizations that assists people facing a mortgage foreclosure. One of the most important things they are trained to know is the law and your rights. Many people take for granted whatever their bank or lending institutions tell them regarding a mortgage foreclosure. The lending institution will tell them that once the papers have been prepared and issued to the sheriff’s office they must leave the property right away. This is not the case in various states throughout the USA.
Foreclosure redemption period
Some states, such as Illinois and Minnesota have a redemption period where a homeowner can still hold on their home and thus avoid a mortgage foreclosure The time period for will differ from state to state, ranging from 3 days to six months. If you live in the state of Minnesota, for example, you may be able to clear up your back payments in the six months period that they allocate and avoid losing your house.
Any sensible homeowner would be wise to check into their state laws and find out if their state carries a foreclosure redemption period and how much flexibility this period allows for coming up with the past due payments. It is also significant to note the redemption period type which can make a difference in how your particular mortgage foreclosure will impact your life.
Some states make the redemption period before the sale while others allow a redemption period only after the house is auctioned. If the house is sold, the added stress of dealing with the new owners is very traumatic on already upset homeowners, who may feel that all is lost after losing their home.
Do not allow the new owners to annoy you by saying that you have to leave the property right away so that they can move in. If you live in a state that permits the redemption grace period after the sale, they cannot throw you out you by law. You are the one who is protected by law. You do not have to leave the property right away. You can use the whole redemption period to try to come up with the funds, or if you know you cannot do that, you can take that time to find a new residence.
Therefore the redemption period in your state offers two benefits. First and primary it will give you time to try and save up to meet the back payments in full, negotiate a repayment plan or try for a loan through a foreclosure assistance program. In certain conditions you can even sell your home yourself to get out from under the financial burden.
The second advantage is the extra time to get your life back in order. You will need to make moving arrangements, find suitable housing, clear up some old debts, search for work if you are moving far away. It gives you time to make contacts and find resources to assist you get back on your feet. Do not overlook the benefits of a redemption mortgage foreclosure period.