Foreclosure questions

The foreclosure questions page will list questions that have been asked frequently in hopes that they'll be able to help someone else in the future. Before checking the foreclosure questions section, you may want to take a look at our foreclosure blog.

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1. I just got a letter from my lender with the heading:"Notice of Default". Does this mean I'm in foreclosure? Well, think of this letter as a warning. They are letting you know that you are behind on your loan and that if you don't make some effort to make up the amount due or make some other payment arrangement then they will proceed with the foreclosure.


2. There's a lot of talk in the news about short-sales. What are they and how do they work? A short sale occurs when a house is sold for less than is owed on it. This technique is used to purchase a house when there is no equity in the house. This will only work when the lender agrees to take less for the house than is owed on the loan. The bank will agree to this in a market such as today's when the bank knows that it stands to lose even more by foreclosing on the house and then selling it.


3. What is a deficiency judgment? Deficiency judgment refers to the amount of money still owed to the lender by someone whose property has been foreclosed. Let's say the lender has gone through the whole foreclosure process and has sold your house at auction. If your home sold for less than the amount owed on the loan, the lender can go back to court and request to get reimbursed for the difference between what is owed and what it was able to recoup through the sale of the house. Deficiency judgments are allowed by certain states and specially for properties which were not the homeowner's primary residence.


4. What does deed in lieu of foreclosure mean?The deed in lieu of foreclosure is used in cases when you've fallen behind on your payments and have no way of catching up. Rather than foreclose and undergoing all kinds of expenses, the lender will allow you to just give back the house by just handing over a deed granting the lender all interests in the property. Keep in mind, that even though it's less expensive than a foreclosure for the lender, it isn't usually allowed.


5. I've just received a letter from the lender with the heading:"Notice of Default"; Is it time for me to move out?The notice of default is one of the very first things that the lender must do, before beginning the foreclosure process. Depending on the state where the property is located, you may have a few more months before the foreclosure process is completed. It will probably be to your advantage to stay in the home as long as you can. You should definitely consult with a lawyer for advice on this issue.


6. In Wyoming, can the successful bidder at the auction held on the steps of the county courthouse, take possession of the property by immediately evicting the seller/defaulted owner and changing the locks or the doors? If not, how soon can the successful bidder take possession?

   The short answer is yes. Keep in mind that the eviction process is a formal process involving the court system. I suggest getting legal advice if you need to proceed in this manner.

   The eviction process has the following 3 steps: 1. Notice to vacate must be served by the sheriff's office or an officer of the court. 2. If the tenant refuses to leave, then he/she must be served with a summons beginning the process of a court hearing. 3. At the hearing you will get a writ of restitution which is a court order authorizing the sheriff to forcefully remove the tenant.



7. Here's my foreclosure question: I keep hearing in the news that the government is offering help for homeowners in foreclosure, but I don't get much info. Is there some place where I can find more information on the government programs?Well, you've come to the right place. To start with, check out our blog, listed above. There you will find all the latest news on the government help. You may also want to check out this website further by going to the bottom of our home page where you will find a lot of relevant links. There is a button that links to our home page on the left hand side of this page.