What is Foreclosure ?

Shreveport Real Estate


Buying a house is part of the American dream. You work real hard to save up enough money for a down payment, you search the Shreveport real estate market till you find the perfect house, and you choose the mortgage company that works best with your budget. After buying your house you are so happy u are on cloud nine! Unfortunately for some of us cloud nine fades away when we see that big F staring us in the face. That’s right Foreclosure!

Foreclosure can happen to anyone. There are several reasons why your house might go into foreclosure including being laid off, death of a loved one, or unexpected extra finances due to an accident, illness, or even a birth of a child. Life happens and with life we sometimes experience unexpected things that put us in very tough situations. Because of this hardship you are now in you start to get behind on your bills. Your mortgage starts calling you after you are a full 30 days past due. After about three months will you then also start receiving letters in the mail about your house going into foreclosure.

This is the right you gave your mortgage company when you bought the house. Just like with any other company you borrow money from no matter your financial situation you are responsible to make the payments. In the event you are unable to make your payments your mortgage company has the right to reposes your house and hold an auction to try and collect the money owed on the house. In the event your house does not sell or does not sell for how much owed a deficiency judgment could be pursued against you. Both of these could seriously affect your credit and could affect your ability to purchase a home or any other big purchase in the future.

In Shreveport, Louisiana when your house starts to go through foreclosure it goes through a process called a judicial sale. The first thing that happens in a judicial sale is the mortgage lender will file a suit with the Shreveport court system. You will then receive a letter from the court demanding full payment. In most cases you are giving 30 days to respond to this letter with payment to avoid foreclosure. In the event you do not make the payment a judgment will be entered and the lender can request an auction to be held on your home. Usually several months later the Shreveport Sheriff’s office will hold the auction. Once your house is sold you will be served with an eviction notice and will have to move out immediately.

From January to June of 2010 there were 1.9 foreclosure proceedings initiated. In September 2010 alone 1 in 371 homes received a notice. You might be saying those numbers are not really high or that foreclosure could never happen to you. Well you are wrong. Foreclosure can happen to anyone. Foreclosure effects you and your family in many ways such as an exceeded amount of stress, depression, possible loss of job if you haven’t already, possible divorce, forced to rely on others, or in some cases leaves you homeless.

If you are behind on your mortgage payments and are faced with possible foreclosure you have options. One option is to seek out help from a foreclosure avoidance counselor, another would be to speak with your lender right away, and can also locate the state of Louisiana and city of Shreveport’s foreclosure resources. Selling your house before it reaches the foreclosure process is also an option, some times a Short Sale is a solution. Whatever you do don’t ignore the problem, it will not go away.


Leave a Reply

This site is protected by Comment SPAM Wiper.