foreclosure states (see previously for the list of judicial foreclosure jurisdictions). Approximately half of states in the U.S. have laws that allow homeowners the right to redeem their mortgages for a specified amount of time (90 days to one year) after the foreclosure sale. This right is typically granted after the foreclosure sale price, plus interest and other allowable fees, are paid to the foreclosure sale purchaser. The homeowner might be able to return to the home for less than the original mortgage if the home sells for a price far below its fair market value at a foreclosure auction. The homeowner may also recoup the equity by redeeming the property for the foreclosure sale price, selling the home for the fair market value to a buyer, and keeping the difference.
THERE MIGHT BE TIME TO SAVE YOUR HOME
Because the process of foreclosure can be lengthy, between 2-12 months, you may have time to save your home, particularly if in a right of redemption jurisdiction with a long redemption period. You should act quickly and according to a plan. Depending on the process, either nonjudicial or judicial, you’ll have a certain amount of time to get your affairs in order. If your goal is to save your home, as it should be, ensure you start repaying property taxes and homeowner’s insurance, if both are applicable. Otherwise, you will compound your problems and be hit with additional tax liens, or even a liability suit or casualty loss.
READ THE FINE PRINT — ALL O RINT — ALL OF IT
Once the process has begun, you must carefully review all the correspondence that you’ve received from your lender. Phone calls and letters will begin, and you should also review your mortgage documents as an added measure. This will help your
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