When You Are In Foreclosure You are still Billed
Do not make the mistake and think that because your home is in foreclosure it means that you are no longer getting additional charges on your account. When your loan with your mortgage company is still outstanding, meaning it is not paid off in full, and you are still under contract. That means you can still get a new bill each month, in addition to late charges, and fees.
You should always view your mortgage bill as an ongoing bill that does not stop until it is paid off in full, including any outstanding late fees, attorney fees, corporate advances, court cost, etc. When your mortgage goes into foreclosure, it does not mean the bill stops accruing late charges, attorney fees, or monthly mortgage bill. In fact, if you go into foreclosure for being 3 months past due and you owe $10,000 in past due mortgage payments, late fees, and attorney fees, and you mortgage remained in foreclosure for another 3 months with more fees; chances are you will end up owning about another $10,000 more which would probably double your total amount due if you decided to make your payments on your account to get out of foreclosure. A lot of mortgage companies will negotiate the late charges, but not the attorney fees that were incurred already; since they will have to pay the attorneys if you do not, that is how it ends up. Your account going into foreclosure will end up costing you more. The reason why it would cost you more is because of the attorney fees that you will incur when you go into foreclosure, unless you are able to catch it as soon as your account makes it into foreclosure, or if you can work something out with the attorneys handling your mortgage account. If you go into foreclosure and are planning to eventually make your payments again to avoid the sale of your home, you should always have an eye on the sale date of your property. You can get that information from your mortgage company, the mortgage attorney, court, or from a foreclosure publication notice. The best place to get that information is usually through your mortgage company though.
If you go into foreclosure you are only allowed a limited amount of time in foreclosure depending on your state’s law, before your would need to paid up your account or get on a re-payment plan to get out of foreclosure. That way you do not stay there too long and your property gets auctioned off. Each state has it own unique laws that sets the timeline once the account goes into foreclosure before it can be sold for non-payment. I just want to make sure that if your account goes into foreclosure that you are aware that you will get a monthly bill each month as the months are changing, plus late fees, and additional attorney fees. There is often a misconception to believe that a mortgage bill stops once the loan goes into foreclosure, and then starts up again if it comes back out of foreclosure due to payment. That is wrong. The bill never stops until the debt is completely paid off.
