This classroom will teach you:
- Ways to stop or avoid foreclosure;
- What to do when you are served with foreclosure papers, and
- What to expect from the foreclosure process.
WARNING: Foreclosure cases can be very complicated. We strongly recommend that you seek the services of a licensed attorney. Although this classroom will provide information you would need to know if you choose to represent yourself, it is not (and can not be) a replacement for the services of an attorney.
FREQUENTLY ASKED QUESTIONS
What is foreclosure?
Foreclosure is a lawsuit asking the court to sell land to pay a debt and end your right to redeem the property by paying the debt. The mortgage company may ask for a deficiency judgment, which means that if the home sells for less than you owe, they would get a judgment against you for the difference.
How do I know when I am in foreclosure?
From a legal perspective, you are in foreclosure once you have been served with the Foreclosure Lawsuit. The documents served on you to begin the lawsuit should be a Summons and a Complaint. If you also own and occupy as your residence the property being foreclosed, you also should receive a Notice of Right to Foreclosure Intervention along with the Summons and Complaint.
From a loan servicer’s perspective, you are in foreclosure once the servicer has decided to retain an attorney to file a foreclosure lawsuit against you. You often will hear the servicer tell you that you are “in foreclosure” before you have been served with the Summons and Complaint.
How do I know when I’ve been served?
You can be served in three ways:
- Personal service (you have been handed the Summons and Complaint directly, usually by a Sheriff's deputy or private process server)
- Substitute service (someone who is of suitable age and discretion who lives with you has been given the Summons and Complaint to give to you)
- Publication (a notice was published once a week for three weeks in a local newspaper). This is supposed to be a last resort that happens when a Defendant cannot be located after a reasonable efforts are made to locate him or her.
What am I supposed to do after I have been served with the Summons, Complaint and the Notice of Right to Foreclosure Intervention?
You have options. You have thirty days from the date you are served to make a response. If you are eligible for Foreclosure Intervention, then your response can be one of two alternatives. You can either send a Request for Foreclosure Intervention, or you can go ahead and officially Answer the Complaint. If you do not own and occupy the property that is being foreclosed, you must Answer the Complaint within thirty days because you are not eligible for Foreclosure Intervention. If you are unsure whether you are eligible for Foreclosure Intervention or not, you can both request Foreclosure Intervention and Answer the Complaint to protect yourself.
What happens if I do not Answer or request Foreclosure Intervention?
If you do not respond to the Summons and Complaint at all in the thirty days after you are served, then you will be in Default in the Lawsuit. When that happens, the lawsuit will move forward without you. If you are in Default for failure to respond, you may not present a defense or counterclaim, although you may still be able to contest the amount of money the Plaintiff claims that you owe.
If I do not Answer or Request Foreclosure Intervention, will the cops show up in thirty days to put me out?
No. The police will not show up in thirty days if you fail to respond initially. The Plaintiff must still comply with all legal procedures. These include obtaining a court-approved Judgment of Foreclosure and having the house auctioned off before you are at risk of law enforcement physically evicting you from the property.