If you are like many Americans today, you will be worrying if you will one day have to face a mortgage foreclosure. March 2008 sailed in with a record of 900,000 homes going through foreclosure. These staggering figures will alarm anybody, homeowners, investors, politicians and economists alike.
There are ways to prevent from losing your home and in turn your life and everything you have worked for. The organization called Twin Cities Habitat for Humanity Mortgage Foreclosure Prevention Program (MFPP) for example, is one of the organizations that help people facing a mortgage foreclosure save their homes. One of the most important things they stress is to know the law and to know your rights.
Many people take for granted whatever their bank or lending institutions tell them concerning a mortgage foreclosure. The lending institution will tell them that once the post has been made to the sheriff’s office they must leave the property immediately and thus leave their hopes and dreams behind. Such is not the case in certain states across the USA.
Foreclosure redemption period
Some states, such as Illinois and Minnesota have a redemption period where a homeowner can still hold on their home and thus avoid a mortgage foreclosure if they can make good on what monies are owed to bank or other lending institution. The grace period for will vary from state to state ranging from 3 days to six months.
If you live in the state of Minnesota, for example, you may be able to clear up your back payments in the six months period that they allot before completing the mortgage foreclosure and losing your home. Any prudent homeowner would be wise to check into their state laws and find out if their state carries a foreclosure redemption period and how much leeway will this period allot them for coming up with the payments in arrears.
It is also important to note that where the redemption period is placed can also make a difference to how your particular mortgage foreclosure will affect your life. Though the redemption period is always before the eviction, some states make it easier by placing the redemption period before the sale while others allow a redemption period only after the sale. The later causes more complications. If the house is sold, the added worry of dealing with the new owners is very stressful on already worried homeowners, who may feel that all is lost and must leave the premises at all cost.
Do not let the new owners harass you and tell you that you must leave the premises immediately so that they can move in. If you live in a state that allows the redemption grace period after the sale, they cannot forcibly evict you by law. You are the one who is protected by law. You do not have to leave the property immediately! You can use the entire time allotted by the redemption period to try to come up with the funds, or if you know you cannot do that, you can take that time to find yourself suitable housing accommodations.
Thus the redemption period in your state provides two benefits. First and foremost it will give you time to try and save up to meet the back payments in full, negotiate a repayment plan or try for a loan through a foreclosure bailout. In certain circumstances you can even sell your home yourself to get from under the financial burden.
The second benefit is the extra time to get your life back in order. You will need to make your moving arrangements, finding affordable housing within suitable neighborhoods where your children can go to school and walk the streets safely, clear up some old debts, look for work if you are planning to move far away, It gives you time to make contacts and find resources to help you get back on your feet. Don’t let miss this magnificent opportunity of a redemption mortgage foreclosure period to work to your advantage.