If no alternatives or loan assistance solutions can be worked out, the foreclosure process initiated by Bank of America moves forward according to the procedures and rules governing residential real estate foreclosures in the state in which the residential property is located. Bank of America generally works closely with the borrower to avoid this situation, provided some acceptable solution can be found.
The specific foreclosure process followed by the bank will based on either the judicial or non-judicial foreclosure allowed in the state. Depending on the type of process, Bank of America initiates appropriate proceedings to sell off the property on which the borrower defaulted on mortgage payments.
Though it doesn’t happen often, a foreclosing lender may initiate foreclosure process before an official notice of foreclosure has been received by homeowner. Lenders can initiate default notification process after a borrower late on his scheduled mortgage loan payments by 30 days or more.
In a judicial foreclosure, just as the name indicates, the entire foreclosure process will be supervised by the courts. Bank of America files a civil lawsuit that sets the foreclosure proceedings into motion. In a non-judicial foreclosure, the courts and lawsuits are not involved. The specific course the Bank of America follows will depend on this important factor.
Bank of America Non-Judicial Foreclosure Process
The borrower who is late on his mortgage payments is informed about the commencement of the foreclosure process. Bank of America will then record a notice of default.
If no further developments happen to satisfactorily resolve the default, the bank proceeds to record a notice of sale. This notice is mailed to the homeowner facing foreclosure along with any other legal notices. The bank may also publish the same in prominent local papers with wide circulation.
After this stage, the date is already set for a public auction. At the public auction, the residential property is sold to the highest bidder.
Bank of America Judicial Foreclosure Process
As in the non-judicial process, the borrower will notified about the bank’s initiation of foreclosure action first. All the mandatory papers required to initiate such action are then filed with the local court, after which the same will be served to the borrowers and other parties with any interest (lien) in the property to be foreclosed.
After sufficient time has been allowed to notify all parties, hearings will be held in the court pertaining to the foreclosure. After this step, the court passes the judgement and a public foreclosure sale date is set.
On the scheduled date, the property gets auctioned off and sold to the bidder making an offer acceptable to Bank of America. In either process, the legal notices and auction dates are generally published in newspapers.
Even after the sale of the foreclosed property, the borrower occupying the property may be eligible to get funds and also additional time. In some cases, they may also receive funds to assist them with their move from the sold property. If the property was rented out and currently has tenants, they may also be qualified to receive financial assistance.
To gain further information about any of the matters related to after-foreclosure procedures, a homeowner should consult with a Bank of America foreclosure specialist for appropriate guidance.