Sailing Through Foreclosure A Guide to the Four Stages

Navigating the stormy seas of foreclosure can be harrowing, but fear not, for I, Amy Ellis, have charted a course that will bring you safely to shore. Tune in as we journey through the four stages of foreclosure, providing you with the compass and map needed to steer clear of the rocks of despair. No jargon, no sugar-coating—just actionable advice and a heartfelt understanding of your plight as we explore the 'Handling It' stage through to the dreaded 'Too Late' stage.

In this episode, we start with the early warning signs at the 'Handling It' stage, where being proactive is key, and progress through to the 'Frantic' stage, where the auction hammer looms ominously. I'll illuminate the often-misunderstood 'Right to Cure' period, offering clear strategies for those of you caught in the 'Stalling' phase, where inaction can be your worst enemy. Whether you're seeking a life raft to keep your home or a dignified exit strategy, this episode is a beacon of hope for homeowners navigating the treacherous currents of foreclosure.

Be the first to know about the next episode of Foreclosure Chronicles by signing up at foreclosurechroniclespodcast.com 
By signing up you also get access to special bonus recordings.

Amy is a licensed Realtor in North Carolina. She is affiliated with Buy Homes with Rose LLC brokerage. This is not a solicitation to get a listing. This is a podcast to provide you with options for your situation.

Episode Transcript

Speaker 1 (00:20):
Welcome to another episode of Forclosure Chronicles
podcast, where we helphomeowners in Forclosure with
options so that they can makethe best decision for their
situation or exit the propertywith dignity.
I'm your host, amy Ellis.

(00:42):
In the last episode I discussedthe two types of Forclosure the
judicial and non-judicial.
I focus more on non-judicialbecause that's what is used in
the state of North Carolina.
On this episode, I'm going tobreak it down a little bit

(01:06):
further, which, if you listen tothe last episode, I gave a
timeline of the Forclosureprocess.
So on this episode, I'm goingto break it down to the phases
of the Forclosure process.
There are four steps, fourstages that a panit homeowner

(01:32):
goes through while in Forclosure.
These stages aren't set instone.
You can't Google them to see oh, is this for real?
You should be told.
I made the stages up.
However, once you hear whatthese stages are and the
definition that's behind eachstages, you'll see why I created

(01:58):
the where you are timeline,because there are a lot of panic
homeowners that just don't know.
They think that everything isgoing to get cured or
mysteriously disappear.
That is not so.
So what are those four stages?

(02:21):
You have the handling it stage.
You have the stalling stage,you have the frantic stage and
the last stage is too late stage.
So, just with those, just by mementioning those stages and

(02:52):
phases, do you know where youare?
Are you handling it?
Are you just stalling?
Has it got to the point where,uh-oh, your frantic and
hopefully, if you're listening,you are not in the too late
stage.

(03:12):
So let's break these down.
Let's break each one of thesestages down.
All right, handling it?
This phase occurs around 90 daysto six months.
You're about 90 days to sixmonths delinquent.
Okay, you receive multipleletters from the lender.

(03:35):
You might even be working withthe lender via a loan
modification.
Some other things that youmight be doing during this phase
is okay, you got these notices.
You know you can't do anythingabout it, so you might list the

(03:57):
home as is with an agent, or youcan be borrowing money from
reliable sources, like yourfamily or friends during this
stage.
Nevertheless, when you getthose notices, guess what?
You're actually doing somethingand you handling it.
And there are homeowners that,hey, they're on it.

(04:21):
They're not wasting any time.
They know they can't, they knowthey're out of options and they
don't want to wait any longer.
They just want to go ahead andhandle it.
That's why this is the handlingphase.
Again, you're about 90 days tosix months delinquent and you're
actually handling yourforeclosure via a loan

(04:45):
modification or you getting withthe agent to list it as is, or
you could be borrowing moneyfrom friends or family to help
you with your situation.
The second phase stalling phaseyou're about six months or more
delinquent on your mortgage.

(05:05):
By this point you have receiveda right to cure, a letter from
an attorney.
Remember I mentioned mentionedthat in the last episode.
You have approximately about 60days to catch up your payments,
but in this phase you donothing.
You don't do anything.

(05:27):
A lot of people like to callthis phase the ostrich phase.
The panic homeowner has theirhead in the sand because they
don't want to deal with it.
And during this phase, a panichomeowner can be saying to
themselves I have it taken careof.

(05:48):
So during this stage you'reprobably the panic homeowner is
receiving, I'm sure, lots ofsolicitations and mail, phone
calls hey, we can buy your house.
Hey, we can help you do a loanmod.
Hey, you know, we can sell quit.

(06:09):
Whatever the case may be,whatever the advertisements are,
what you're telling yourselfand you're telling them is I
have it taken care of.
But do you really?
This is the stalling phase.
Does this sound familiar?
Again, you're about you're oversix months delinquent on your

(06:29):
mortgage.
You have received the right tocure letter from the attorney.
So you got about 60 days to getthese payments caught up.
If you want to stay in your home, okay, the third phase, the
frantic phase.
By this point you're about 75days from a sale date.

(06:51):
You have been served papersfrom the attorney's office that
you have ignored, that you haveignored in the stalling phase.
So there's about approximately45 days to your hearing date,
because you know when you getthat letter it's going to have a
hearing date for you to go tocourt to let the judge know

(07:15):
what's going on.
So in this phase, you're likeokay, oh crap, what do I do?
You try to get it listed.
You look frantically for thoseletters, postcards that you
received from investors and youmay file a chapter 13 or file

(07:41):
for bankruptcy.
This is the frantic stage,because you stalled earlier.
You're like I got it taken careof and now it's coming down to
the wire.
Reality is hitting in thisphase.
So, again, you're about 75 daysaway from the sales date.

(08:02):
What are you going to do andthe final phase, too late.
Your property has been soldback to the bank and it's known
as a REO or real estate ownedproperty, and by this time you

(08:23):
have no choice but to leave yourhome.
The property is no longer yours.
This is where someone will cometo the door and possibly give
you cash for keys for you toexit out of the property.
It could be within at thatmoment or within a couple of

(08:47):
hours, a week or whatever, butonce it's sold back to the bank,
it's too late to try to save itand you have to exit the
property with dignity.
So once again, we have what Icall the where you are timeline.

(09:14):
Are you handling it or are youstalling?
Are you now frantic because theclock is ticking and hopefully
you're not at where it's toolate stage because the property

(09:34):
has now been sold back to thebank?
Whatever the case may be, again, the panic homeowner has
options.
Now, once it gets to the lastphase, there's no options left.
If you think you're in thestalling phase or frantic phase,

(10:00):
there's still time.
We like to see people in thehandling it phase, but I get it.
Life gets to us and we don'twant to deal with it too much
pressure.
But again, don't let it get tothe final stage of where it's
too late before you reach out tosomeone to help you save your

(10:20):
home.
All right, hopefully this washelpful and put a little bit
more of a perspective of thetimeline or where you are in
your foreclosure process.
Make sure, oh wait a second, Ihave something.

(10:44):
Oh wait, if you are, if youlike what you heard and you want
a copy of the where you aretimeline, guess what?
I can get that for you.

(11:05):
What you want to do is go toforeclosure chronicles
podcastcom.
Again, that's foreclosureschronicles podcastcom.
Line up at the drop down, putyou want the bonus, click bonus,

(11:28):
and when I get that email Iwill send you this timeline via
email is interactive.
It says handling it stalling,frantic and too late.
So that way, check to see whereyou are.

(11:49):
So again, I hope this washelpful.
Don't forget to go toforeclosure chronicles
podcastcom.
Sign up for this, for thisbonus, and you might want to
also sign up because you will bethe first to get notified when
I drop a podcast show and theguests that I have on the show

(12:10):
like to leave little nuggets andgifts and bonuses and you can
only get those bonuses if yousign up at foreclosure
chronicles, podcastcom.
Thank you so much, until nexttime.