So tell me what do you think about foreclosure? Is your experience the same as described by Fannie Mae?

WASHINGTON – Aug. 24, 2011 – In recent news, Fannie Mae has publicly assured
homeowners going through foreclosure that they will be protected from losing
their homes while applying for a federally funded loan modification. Homeowners
can apply for a modification at any point before or during the foreclosure

If a modification is approved, homeowners can keep their homes
if they make their adjusted payments. Absent that, here are the stages of a
typical foreclosure:

1) In default: A loan is in default when a mortgage
payment is 30 days late.

2) Warning: When a loan is 60 days past due, the
bank, credit union or mortgage company warns that foreclosure is the next

3) Proceedings begin: After 90 days, the lender refers the loan to
its foreclosure department, and hires a local lawyer to begin foreclosure

4) Sale advertised: The lender’s lawyer advertises the
property for sale for four consecutive weeks in a local newspaper. The sheriff’s
sale date is listed in the advertisement.

5) Sale held: The sale is held
on the published date. A sheriff’s employee conducts a courthouse auction and
the highest bidder wins, usually the bank that owned or serviced the

6) Sheriff’s deed: The winning bidder gets a sheriff’s deed
that lists the last date the homeowner can redeem, or take back, the property,
usually six months from the date of the sheriff’s sale. During this redemption
period, the homeowner can live in the property or try to sell it.

Redemption period: To redeem a property, the homeowner must pay off the mortgage
and all interest and late fees, court and attorney fees, title and appraisal
fees, taxes and insurance. Otherwise, they will be evicted from the

Copyright © 2011, Detroit Free Press. Distributed by
McClatchy-Tribune Information Services.