foreclosure short sale

There are lots of terms out there to figure out. Short sale, foreclosure, deed in lieu of, etc. are all terms commonly heard in the current market. Sometimes it can be confusing trying to figure out what is really happening. Some short sale clients receive a foreclosure notice and they don’t understand what that means. So, let me explain it to you.

When you default on your mortgage or stop making payments, when you hit the 90 mark, the bank will start foreclosure proceedings. Basically, the bank is asking the court for the permission to sell the home to make good on the debt. Foreclosure proceedings take a while to complete, especially in Philadelphia.

Here’s what will happen. After 90 days go by and you have stopped making payments, the bank will contact you to talk about it. If you aren’t able to bring your mortgage current, the bank will start the foreclosure process. The foreclosure process doesn’t mean sheriff sale. What it means is that they are going to ask the judge to allow them to sell the home. This process can take six to nine months.

We know that people who have their Philadelphia home on the market for short sale often get there home under contract but they still get foreclosure notices. The bank continues the process just in case they have to sell the home at sheriff sale. They don’t want to start all over again.

You may be in foreclosure or in the process of being foreclosed upon even while you are doing a short sale. Don’t worry. We will work with your bank to make sure they understand that there is an offer on your home. Just know that you have lots of time. Let your agent know that you are in foreclosure so that they can contact your lender directly and get you the help that you need.