What is a Foreclosure Notice?

A foreclosure notice is a very simple concept. It means you haven’t made the payments on your loan and the bank is going to secure the asset so they can recover the money they loaned to you to buy the home. A foreclosure notice tells you that the bank has started foreclosure proceedings.

A foreclosure notice is filed when a homeowner misses too many payments. When you buy a property, you sign loan agreements promising to make monthly payments for a period over many years until the loan is paid off. This loan is a secured loan. The loan is secured because the home is an asset. The bank technically owns the property until you have paid off the loan amount in full. If you do not make the payments, or you fail to live up to your obligation, then a foreclosure notice is filed.

A foreclosure notice is filed by the bank. They state that the homeowner has failed to make their monthly house payments and that the bank is beginning to take the steps of seizing the property. The bank must file the notice through the county courthouse to begin the foreclosure process. You won’t just receive a letter from the bank. You will receive court papers that may be served to you or mailed. These papers will also be posted in the local newspaper’s public notice section. It is public information when you fail to make the payments on a property.

Many people are extremely embarrassed when a foreclosure notice is put in the local newspaper. You cannot stop this notice from being printed or control which publication the notice will appear in. Your name will appear next to the foreclosure notice. You may find coworkers and friends see this notification and it will be embarrassing.

You will also receive a notification of the foreclosure in the mail. Hold onto this notice when you receive it. If you are surprised to see a notification of foreclosure, it is important you contact the lender right away. There could be a mistake. However, always take these notices seriously. Never disregard a foreclosure notice if you receive one in the mail.

A foreclosure notice is filed by a lender to secure a home when you do not make the promised monthly payments. The bank will seize the property and sell it in an auction to try to recover the amount of money they gave to you to buy the property in the first place.