How homeowners can lose their homes
There are three ways a homeowner can lose their home:
1. A lender, usually a bank or mortgage company, can foreclose after the owner stops making mortgage payments. This is the most common type of foreclosure. Lenders can’t start foreclosure proceedings until a borrower is at least three months behind on payments.
2. People can also lose their house if they don’t pay property taxes. An investor can buy a house for as little as a few thousand dollars in back taxes. These homes are sold at sheriff’s auctions.
3. HOAs can foreclose if a homeowner misses a year or $1,200 in monthly maintenance payments, whichever comes first.