Select Portfolio Servicing (SPS) Foreclosure Process

Select Portfolio Servicing Foreclosure Process And Timeline.

Foreclosure process on a property can be a challenging process but knowing a few things can help. First, thing Home Preservation is the department that will start the process of foreclosure if you miss your first payment.

What Are The Foreclosure Timeframes?

The process of foreclosure for different states and counties is different. There are however some practices which govern these process of foreclosure, For example, When you default on the loan you will receive a notice.

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

Before the foreclosure process initiates Notice Of Intent (NOI) is sent and then a specific amount of time is given to respond or bring the account to current.

If the homeowner is in default of the loan, NOI is a notice sent to inform that the company will foreclose the property if the loan is not brought to current. In some states, this notice is required to be reissued if a payment is accepted by the lender to restart the foreclosure timeline. But, eventually, the lender will not accept a payment and they will foreclose if the loan is not brought to current.

One thing that people do that works against them is that they fail to act on the NOI. 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 Select Portfolio Servicing Foreclosures

The type of foreclosure that Select Portfolio Servicing will perform depends on which state you are in and the county that your property is located in. SPS Mortgage does two types of foreclosures; the judicial foreclosure and the non-judicial foreclosure.

Non-Judicial Foreclosure Process

In the first month, SPS Mortgage will make a call to you and ask the reason for missing payment. An NOI will be issued to you in the second month. When you have missed the third payment you will receive the Notice of Default (NOD) from the local trustee. At that time you can work either to clear your debt or else your loan will be accelerated. This is where we can help you apply for mortgage assistance relief programs.

Notice of Default (NOD)

when starting the foreclosure process notice of default(NOD) is the first official document filed.  Once the homeowner is 90 days behind in payments only then can the Notice Of Default (NOD) be filed. 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, a description of the defaulted amount (past due payments), the date which the house can be paid for or cured by the borrower, the action that can be done in order to prevent foreclosure, 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)

Trustee places a notice in front of the house that the property will be sold in an auction to inform the public that the borrower is in default of the loan. To give the notice of your default the trustee will also place a notice in a local publication as well as placing a notice on the property. 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

When it comes to the judicial foreclosure, there are some basic steps that one should know.

When you miss one-month payment, Select Portfolio Servicing(SPS) will inform you about missing payment over the phone and ask when you will send your payment. Select Portfolio Servicing will send you a notice of breach of contract also known as NOI but will continue with the collection. You have the opportunity to bring your mortgage current within a period of 30 days.

Select Portfolio Servicing will hire an attorney to file a complaint. The complaint will be filed in the county where the house is located.

Summon is issued by the court after filing of the complaint, you will have a specific time to respond(typically about 20-30 days). You have the option to file an answer or not, if you do not file, you are allowing the lender a default judgment and allowing your house to be reposed possibly sooner. However, if you do file an answer, you may be able to halt the foreclosure process with the proper defense.

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 request the judge to grant a 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.