| State | Non-Judicial Foreclosure | Judicial Foreclosure |
|---|---|---|
| Michigan | $2,025 | On Approval(2) |
| Minnesota | $1,875(9) | On Approval(2) |
| Mississippi | $1,600(1) | On Approval(2) |
| Missouri | $1,800 | On Approval(2) |
According the Joint Economic Committee of Congress, the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300. The cost of preventing a foreclosure is not easily categorized.
Phase 1: Payment Default Payment default occurs when a borrower has missed at least one mortgage payment—although the technical definition can vary by lender. After missing the first payment, the lender will reach out via a letter or telephone.
The new law also increases the base amount in the trustee's or attorney's fee that may be charged for executing the trustee sale of the property through the nonjudicial foreclosure process, from $425 to $475 if the unpaid principal sum of the loan is $150,000 or less, or from $360 to $410 if the unpaid principal sum of ...
the first mortgage. any properly recorded junior liens. special assessment taxes, and general taxes. The order of payment in a foreclosure is; the cost of the sale (advertising, attorney fees, trustee fees, etc.), any special assessment taxes and general taxes, the first mortgage, whatever is recorded next.
about 3-6 monthsIn general, mortgage companies start foreclosure processes about 3-6 months after the first missed mortgage payment. Late fees are charged after 10-15 days, however, most mortgage companies recognize that homeowners may be facing short-term financial hardships.
If a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy. The automatic stay will stop the foreclosure in its tracks. Once you file for bankruptcy, something called an "automatic stay" immediately goes into effect.
While the homeowner's records may indicate that they have been paying the mortgage, they may not have been paying to the right bank. The cause may be a clerical error on the homeowner's part or that of one of the banks. Regardless, if the current lender is not getting the payments, foreclosure is possible.
Sometimes, lenders can't sell foreclosed homes at a price high enough to cover all the debt that borrowers still owe on their mortgage loans. When that happens, the lender takes a loss on the sale. That loss is known as a deficiency.