The facts you should know about foreclosure litigation.

Foreclosure litigation is an alien term to many, but at point of time, you may have to go through something similar, so it is better to take a look at what this term means. it is a process that allows a lender to recover the amount owed on a defaulted loan. It is generally done by taking ownership or selling of the property of the debtor, securing the loan. For initiating the process of foreclosure, the lender is required to file the appropriate documents with the appropriate officials. There are a number of factors that can lead to a situation where foreclosure litigation is needed. Always the homeowners are not at fault, and there might be a number of factors that lead to eventual foreclosure. Loss of income, military deployment, health or family issues, or issues like Adjustable Rate or ARM, Option ARM, Negative Amortization, or Interest Only loan, are some of the hardships that leave no room for escaping foreclosure. rnAfter the homeowner has missed several payments and different attempts have been made by the bank to collect the same, but failed, the process of foreclosure begins. Let us take a look at what all one can expect in a foreclosure process: If several payments are missed by the homeowner, then lenders allow a grace period, which does not usually stretch beyond 10-15 days. Then after that a late charge is assessed. Even after that if the borrower is unable to pay up any amount, then the borrower is in default. It is during this period that the lender sends letters and makes phone calls. A refund plan or a loan adjustment plan may be offered. After all these, if the borrower is unable to come up with any payment, then the lender refers the loan to the loss mitigation department/foreclosure department and an attorney is retained to handle the foreclosure litigation. The required documents are filed by The lender's attorney, with the public trustee. The public trustee then files a NED with the county clerk and recorder. Once this process is completed, the property is listed to be sold within 110-125 days at a Public Trustee Sale. The full form of NED is Notice of Election and Demand, and once it is recorded, the notice must be published in a newspaper of general circulation within the county for a period of 5 consecutive weeks, where the property is located. A copy of the published notice to the homeowner within 10 days is to be mailed by the public trustee. The homeowner must be mailed a notice describing how to redeem the property and stop the foreclosure litigation at least 21 days before the Public Trustee Sale. The homeowner must file an "Intent to Cure" with the Public Trustee's office at least 15 days prior to the foreclosure sale if he wants to redeem the property and stop the Public Trustee Sale. Till the noon of the day, the homeowner has time to stop the procedure, but after that the sale to bring the loan current and redeem the property begins.