We all have some kind of experience with it. Whether it being a friend, co-worker, family member or even your own experience, foreclosure of a home is present in everyday life. Yet what if I told you that I know what it takes to delay a foreclosure with CitiBank?
It begins with understanding the foreclosure process. So what is foreclosure? It is a legal process in which a person who has a mortgage on his/her property loses it resulting in the estate being sold to recover monies owed. The expenditure covered includes the balance of the mortgage, costs of collecting the added debt and what was spent in foreclosing the property. With a bank such as CITI Bank, foreclosure happens for the following reasons:
• Failing to make payments on the loan.
• Transferring ownership of your property without the bank’s or mortgage lender’s consent while still paying off the debt.
• Violating documented terms of the loan.
The lender has the option of selling the property at an auction or the property will become the lender’s if no one buys it at a certain price.
Note that there has to be a certain amount of time as well as a certain amount of payments missed in order for the foreclosure process to start. If you miss the first payment, the bank or lender will send you a 30-day late. A representative from the bank or lender will call or send you a notice in the mail for the missed payment. If you continue to miss mortgage payments, you will be sent a 60-day late, then if missed again a 90-day late.
By the 90-day late mark, the bank or lender will send a “Notice of Default”. The NOD will state that you have 30 days to make the payment current, appear in court, or face the risk of a foreclosure. If you fail to appear in court within 30 days or make your payments current, the court will rule in the favor of the lender and schedule an auction to sell your home within 7 days. But what does it take to delay the foreclosure?
How to Delay Foreclosure with CitiBank
You have 4 options, a forbearance plan, a partial claim, pre-foreclosure sale, and a deed in lieu of foreclosure. A forbearance plan is a payment plan created by the lender to make it easier for payments to be made or even suspend payments temporary until your situation becomes current again.
A partial claim is another way to delay foreclosure with CitiBank. A partial claim is when the bank allows the mortgagee or borrower to advance funds to the mortgagor in the form of a promissory note. This is a written agreement which states that you will have to pay a certain amount by a certain date. So long as you are not delinquent over 12 months. This will, if followed properly, bring your mortgage payments current. It acts as a second mortgage behind your existing one that collects no interest, and is not due until you pay off your first mortgage or sell your home.
Next there is the pre-foreclosure sale which is a short sale that helps you avoid a foreclosure, but at the risk of selling your home. The sale might most likely go for much less than what the property is worth but can still save you some expenses. Lastly there is the deed in lieu of foreclosure. This allows you to sell your home back to the bank that financed your mortgage. This can be a great way to delay foreclosure with CitiBank, but isn’t what many homeowners want to do.