Consumer Finance and Foreclosure FAQs

• Q: What happens after a fourth month of missed mortgage payments?
  A: After missing four months of mortgage payments, you are likely nearing the end of time specified in your lender's Demand or Notice to Accelerate Letter. When the 30 … More
• Q: What happens at a Sherrif's or Public Trustee's Sale during foreclosure?
  A: A Sheriff's or Public Trustee's Sale is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be … More
• Q: Will filing for bankruptcy stop collection efforts?
  A: This answer depends upon the type of creditor that is after you.  When filing for bankruptcy an “automatic stay” goes into effect.  The automatic … More
• Q: What is the Redemption Period?
  A: The Redemption Period is a period of time after the property is sold.  It is available in some states.  If available, you will be notified of the time frame … More
• Q: Do creditors have a certain amount of time to sue for payments?
  A: Yes. The first thing you should do is determine if the statute of limitations for collecting a debt in your state has expired. If the number of years has passed, the … More
• Q: What is acceleration?
  A: Many contracts for debts contain "acceleration" clauses.  This clause gives a creditor the right to "accelerate" the repayment when a payment … More
• Q: What is the Hope for Homeowner's Act?
  A: This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal … More
• Q: Who is eligible for the Hope for Homeowner's Act program?
  A: You should contact your lender to determine eligibility, but you may be eligible if, among other factors: The home is your primary residence, and you have no … More
• Q: What exactly is repossession?
  A: Repossession is when a creditor has the ability to seize the item you bought or the property you used as collateral for a loan. The creditor usually sells the property … More
• Q: Can a creditor garnish a debtor's wages?
  A: Yes, wage garnishment is a court order that requires an employer to withhold part of an employee's wages and submit that portion to the creditor in order to … More
• Q: Who can help me apply for the Hope for Homeowner's Act program?
  A: The FHA does not accept loan applications for the Hope for Homeowner's Act program directly. Borrowers seeking help should contact their lender, another FHA-approved … More