The Basic Foreclosure Process
Although the foreclosure process is different in each state, here is a basic foreclosure timeline that you can expect for a property in Tulsa or any city.
The First Month: A financial situation happens that makes you unable to pay your mortgage payment for the month.
The Second Month: You get a call from your lender after missing a second payment. They inquire about your situation and ask whether you can pay your missed payments.
The Third Month: Three payments are now owed. The lender gives you approximately 30 days to pay these owed payments. Unless you contact your lender and negotiate an extension or some kind of mediation process, they will start foreclosure proceedings against your property.
The Fourth Month: Since you have not made any of your payments by this point, your lenders are going to hire attorneys to start the foreclosure proceedings.
The Tulsa Foreclosure Sale is Scheduled: A foreclosure sale date is set by the attorneys of the lender. This is usually an auction where interested investors can go to purchase your foreclosed home. The attorneys will send you a notice about this in the mail, or a notice will be hung on your door to warn you. The amount of time until the foreclosure sale depends on the lender and various other factors.
Foreclosure Sale Aftermath: If you didn’t pay back what you owed on the mortgage by the sale date, then your house will be sold to a buyer. The money from the sale goes toward paying the attorneys’ fees and whatever you owed on the mortgage. Once the sale is finished, you cannot get your house back because Oklahoma has no redemption period.
Financial Outcome of a Foreclosure
A home foreclosure can reduce your credit score by a whopping 100 points, sometimes even more. This negative report on your credit report won’t go away for 7 years. However, you can begin improving your FICO score after 2 years.
After the foreclosure, you’ll be expected to vacate the house immediately, or else the lender or new owner will evict you. Don’t wait for eviction to happen because that also damages your credit score too.
If you ever want to purchase another home with a loan, you’ll need to wait for a certain amount of time before you can apply for another loan. Loan companies have their own rules about this. Here are the three categories of home loans:
Conventional Loans – You will have to wait the longest time for conventional loans like Freddie Mac and Fannie Mae. They also have very strict income requirements and credit requirements.
Veteran Affairs Loans – There is a 2-year waiting period after a foreclosure. Your spouse is also affected too. Of course, only veterans or active members of the United States military can qualify for these loans.
Federal Housing Administration Loans – Sometimes you can be eligible for an FHA loan quickly if something out of your control caused you to have a foreclosure, such as a medical emergency or getting let go from a job.
Keep the Communication Going
Keep the communication going with as many relevant parties as possible, such as your partner, lender, family members, attorney, or foreclosure avoidance counselor. Talk to them about your foreclosure situation.
Family Members and Friends – Confide in your family members and friends about your financial hardships and foreclosure status. They’ll offer you their emotional support and possibly financial support too.
Lender – Talk to your lender about the circumstances which caused you to miss one or more payments. Perhaps they’ll give you more time to make your payments and record the information you told them in your file.
Foreclosure Avoidance Counselor: Whenever you’re about to face foreclosure, you can contact the U.S. Department of Housing and Urban Development. At no charge, they’ll let you talk to a foreclosure avoidance counselor who will advise you on what to do next.
Attorney: You don’t need to hire an attorney for your own legal representation, but you can call an attorney and get some general legal advice about foreclosures from them. Just ask the proper questions so you can get good answers.
What to Do If the Payments Cannot Be Made
If you’re in a situation where you know you cannot make your mortgage payments, then you have a few choices. You can see if the bank will conduct a short sale or you can try to refinance. If neither one of these choices is possible, then your last option is to sell your home fast to a real estate investor before the foreclosure is finalized.
We purchase homes in Tulsa that are facing foreclosure and need relief. The condition your home is in doesn’t matter either. After you accept our offer, you can have a full cash payment for your home within a few days. Then you can use that money to pay back what you owe on your mortgage and save your credit in the process.
