Foreclosure Information

A foreclosure is the process by which the holder of a mortgage seizes the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract.

Foreclosures have become commonplace, even with celebrities. Just like people of every other social class in America, celebrities are prone to stretch themselves further than they should, financially.

During the height of the housing boom, many took out the same adjustable rate loans that got people in trouble in 2007 and 2008. Those found themselves in a world of trouble when rates reset.

What Ally Can Do For You...

At Ally, we provide powerful solutions to homeowners who want to avoid a foreclosure. We will determine the best personalized course of action for you, based on your situation.

There are eight approaches to foreclosure and we are here to help you understand all the pros and cons of each so you can make the best decision for your life and your property.

You will be able to walk away without owing anything to your lender!
*All calls are kept strictly confidential and information is never sold to third-parties.

Consequences of a Foreclosure

1. Damage to your credit score.  This makes it difficult for you to get a loan for up to five years, forcing you to rent if you are able to find a lenient landlord or live with relatives. Your credit card companies may categorize you as "high-risk" and decide to close your credit limits or you'll see a tremendous hike in interest rates. Employers have also known to incorporate screening financial responsibility in their hiring process.
 
2. Deficiency judgment.  Depending on your state, your lender is allowed to come after you for the difference between what you owe and what your property sold for at the auction. This means they are allowed to garnish your wages until they are fully paid back.

3. Tax consequences. If your lender does not enforce the deficiency judgment, the IRS could come after you saying the “difference” you didn’t pay to the lender is income to you and you will get taxed on the “difference” at year end.

Typical Foreclosure Timeline

Day 1:  
You miss your mortgage payment.

Day 16-30: 
A late charge is attached to your payment. Your lender will attempt to contact you to find out what happened.

Day 45-60:
Your lender will send you a letter saying you have violated the terms of the mortgage. You are given 30 days to resolve the situation by paying the delinquent amount.

Day 90-105:
Your lender will initiate the foreclosure process. Depending on the state where the home is located, the servicer's representative may record a formal notice of foreclosure at the local courthouse, publish details of the debt in the local newspaper, attend hearings on the case and make appropriate court filings.

Day 150-415:
Your property will be sold at an auction. (Time to auction differs from state to state)

Day 150-415+:
After the sale, some states grant you a “redemption period” where you can still get your property back if you can pay back all your delinquent payments plus penalties and fees.

If you're talking with your bank about a workout plan or a loan modification, make sure to get it writing.
Otherwise, your lender is doing everything they can to push your house to the foreclosure auction