A bank foreclosure is like any other foreclosure; the only difference is that the money you borrowed to purchase your home was from a bank.
In a bank foreclosure, all you have to do is miss one payment and the foreclosure can start. Normally after your mortgage payment is fifteen days late the bank will contact you. If you are unwilling to talk with the officers at the bank or you do not return their telephone call you are just asking for the bank to foreclose on your home. The bank will wait for a total of forty-five days and then you send a letter in writing that will let you know that you are facing foreclosure if you do not submit the payments that you are behind. The bank will still give you time to respond normally around another 30 days. After this nice period of waiting the bank will begin the paperwork that is necessary to foreclose.
Okay, the bank has given you a total of around ninety days to respond before they actually begin foreclosure. They may sound good in some ways, but if you have not talked with them or tried to work out new payment arraignments you are now at least three months behind in your mortgage payment. If you are this far behind in your mortgage payments it will of course be even harder to get caught up unless you know how to create your own one hundred bills.
There are a few ways you can at least save your credit, before the formal foreclosure happens. In some states, you can file for bankruptcy. When you file for bankruptcy you can more than likely keep your home as a protected asset. However, be careful, there are two different types of bankruptcy. One is that you can have all of your debts gone and your slate wiped clean, while the other is called reorganized. With a reorganized bankruptcy, you will still pay any lenders that you owe while still having enough income to survive. But, whether you can file bankruptcy is up to what state you live in. You should talk with a foreclosure attorney to learn if bankruptcy is an option in your state.
The best route to take, however, if your home is about to go into foreclosure is to talk with the bank that holds the lien on your home. Most of them are willing to work with you so you can lower your payments. Banks do not want to foreclose on anyone's home. The procedure takes up their time and is a large hassle for them.
Another route would be to check around your state and find out if there are any other resources that may be able to help such as a foreclosure prevention association.