Flagstar Bank Foreclosure Process

Flagstar Bank Foreclosure Process And Timeline.

The foreclosure process on your loan can be a challenging process. There are some things to know while dealing with Flagstar Bank. You should know the whole procedure will start when you miss the first payment and a department called Home Preservation Department will start the proceedings on the foreclosure process.

What Are The Foreclosure Timeframes?

The procedure of foreclosure is different for different states and even counties. There are some rules which govern the foreclosure practices in most states. For example, a notice will be sent to you that they intent to foreclose if you do not bring the account to current.

Notice of Intent (NOI) To Foreclose and Accelerate “Breach Letter”

After receiving the Notice Of Intent (NOI). Usually, a certain period of time which is usually of 30 days is provided to you.

You will be sent a notice stating the intent to foreclose if you do not bring your account to current as the first step of the process. According to laws of some states, this letter will have to be reissued if the lender accepts some payment to restart this timeline. But at last, a time will come when no any payments will be accepted forcing the homeowner into foreclosure if they don’t catch the loan up.

Some people fail to act when they receive the NOI this is a mistake a lot of people make and this works against them. The moment that you do receive an NOI, contact us as soon as possible to start seeking a resolution to your mortgage delinquency.

Different Types Of Flagstar Bank Foreclosures

There are different types of foreclosure and the type of foreclosure which Flagstar Bank will do depends on the state you are in and the county of your property. There are two common types of foreclosures that are completed by Flagstar Bank; the judicial foreclosure and the non-judicial foreclosure.

Non-Judicial Foreclosure Process

This process stays away from the courts and the documents are filed within the county. Flagstar Bank will call you and ask you why you missed the payment and if you can make the payment when you miss your first payment. Notice Of Intent(NOI) will be issued when you miss your second payment. A notice called Notice of Default (NOD) will be issued once you have missed the third payment. Now, you can only work to clear your debt or else your loan will be accelerated. This is where we can step in and help you apply for mortgage assistance relief programs.

Notice of Default (NOD)

This is the first notice to get filed with the county during this process. For the state of California this notice can only get filed in the case the homeowners are 90 days behind on the payment (again keep in mind this is as of the date that the third payment comes due). The NOD contains information such as the name and address of the borrower, lender, and trustee. It also may contain the address of the mortgaged property, the action that can be done in order to prevent foreclosure, a description of the defaulted amount (past due payments), the date which the house can be paid for or cured by the borrower and a statement that denotes that the house will go up for sale if the default is not cured.

Notice of Trustee Sale (NTS/NOTS)

A notice will be displayed outside the property that this property will be sold in an auction to inform the public that the homeowner is in default of the loan. A notice will be published in a local newspaper or publication is also required by the trustee. You may receive a notice of sale, a notice of default that is followed by a notice of sale or even see the notice by publication.

Once that all the process has been completed, then a date and time are set and your house will be sold to the highest bidder.

Judicial Foreclosure Process

Judicial Foreclosure can go on for months and even for years. Some of the steps that you should be aware of when dealing with this process.

Upon missing the first payment a call will be received asking the reason. When you miss the second payment you will receive NOI. After issuing NOI Flagstar Bank will keep the collection practices ongoing and thereafter the judicial process will begin on the foreclosure of your house.

The attorney will be hired by the lender that will prepare a complaint against you to be filed in court.

After filing a complaint, a summon will be issued by the court and a time of 30 days will be given to answer. You will allow the lender to get a default judgment if you do not answer and your property may be reposed sooner. However, you may be able to halt the foreclosure process, if you do file an answer and with the proper defense.

Lis Pendens

Lis Pendens is Latin for a suit pending. Lis Pendens is a written notice that is concerned with a real estate property.  The court clerk files the Lis Pendens, certifies that it has been filed and then it is recorded by the county recorder. It informs the owner of the real estate property that a claim has been entered for the property and at the same time, the Lis Pendens informs all the buyers who are interested in the property that they are a potential claim against the property.

Power of Sale

In the lawsuit, the attorney will seek the power of sale from the judge to be granted means they can set a foreclosure sale date on your home.

In the event that the lender won the case that was filed against you, then a date and time are set for the house to be sold to the highest bidder.