When a person comes to know about his home foreclosure he tends to think a long haul process along with a fear of losing his dream home. The foreclosure is a process in which a lender tries to get their money back from the borrower. The foreclosure process by bank of America is not different from any other bank but it’s the last step from their side to get their money back.
How BOA Initiates the Foreclosure Process
* The process starts when a person defaults on his monthly installments and bank sends a hardship letter or a letter stating that to make payments at time. Another reminder is sent to you if you have ignored the earlier one. It is further mentioned that if you do not make the payment in the time allotted, the bank will foreclose your loan.
* The owner of property is also liable to any late fees, extra legal charges and other late fees payments. If the borrower is not able to or does not pay the full pay, then banks send him a certified letter of foreclosure and it is served to him by local sheriff or a processor. According to foreclosure process of bank of America; the bank will issue a public notice in a local newspaper of the awaited payments [subjected to the local state law]. At this juncture the home owner can work out the payments with the bank but only if he is able to pay the full pay and nothing less than that is accepted.
* Then the court date is set and the owner and anyone interested in buying the property is present alongside the lender. The court issues an order in favor of the lender and the auction date is worked out. Then the auction dates arrives and the house is sold off. The money from the auction is first used to pay the real estate dues and then the mortgage. If any money is left after that that is given to the original home owner. After that also there is a time period in which owner can buy back his house if he’s able to arrange the money.
You can even go for a short sale as your lender will allow you to sell off the home at a lower price than the value of the property to avoid foreclosure. Other ways you can avoid foreclosure process is through the help of Obama’s stimulus plan where you can go for loan modification or a refinance. It is advised that you must write a effective hardship letter to prove your hardship to save your home.