Franklin American Mortgage Foreclosure Process

Franklin American Mortgage Foreclosure Process And Timeline.

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

What Are The Foreclosure Timeframes?

Although there are some rules which govern the foreclosure practices in most states but still the procedure varies for different states and even different counties. For example, A written 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”

Usually, a specific period of time which is usually of 30 days is provided to you when you receive the Notice Of Intent (NOI).

You will receive a notice stating their intent to foreclosure if you do not bring you to 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 Franklin American Foreclosures

There are different types of foreclosure and the type of foreclosure which Franklin American 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 Franklin American Mortgage; 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. Franklin American 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 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)

To inform the public that the homeowner is in default of the loan a notice will be displayed outside the property that this property will be sold in auction. Publishing of the notice in a local newspaper or publication is also required of the trustee. As the homeowner, 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 has been accomplished, then a date and time are set and your house will be sold to the highest bidder.

Judicial Foreclosure Process

Judicial Foreclosure can be a prolonged process and can keep going for months even years. There are some 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. Upon missing the second payment you will receive NOI. Even after issuing NOI Franklin American will keep the the collection practices ongoing. Thereafter the judicial process will begin on the foreclosure of your house.

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

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

Lis Pendens

Lis Pendens is Latin for a suit pending. It 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. The Lis Pendens 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 permission from the judge to grant the power of sale which 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.