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When filing for a court supervised or judicial foreclosure, the lender will need to file a formal complaint in order to sue you. In this complaint the lending institution only needs to say that the borrower owes them money and has not yet paid. Items that need to be attached to the complaint to validate it include the original mortgage documents and the promissory note to pay, both signed by the borrower. The borrower then receives an official notice of the complaint filed against them. Next, the borrower has a set amount of time ranging from 21-35 days to respond to the complaint. 

The foreclosure process and civil court hearings can typically be delayed by submitting a request for more time to respond to the complaint. Another common option for delaying the proceedings is submitting a request to see a copy of the closing documents. If the borrower can not make even on the outstanding balance by the procurement date, the home is generally given to an officer of the court to sell at auction. This process is completely supervised by the courts, if no entity purchases the property the financial institution retains the home’s deed. In some instances, the financial institution may conduct a foreclosure that is not supervised by the courts, this is known as a statutory foreclosure. This foreclosure process is similar to a judicial foreclosure in that the property is ultimately put up for auction should the borrower not be able to make due on the outstanding balance that is in default. Since this non-judicial foreclosure process is not supervised by the courts, there are fewer things a borrower can do to get extra time on their hands. 

The most common injunction in non-judicial foreclosures is bankruptcy. Filing for bankruptcy immediately puts a stop on the sale or foreclosure of the petitioner’s home. Although this is a short term solution to the long term problem, filing for bankruptcy could help the borrower get rid of some unnecessary monthly payments to pay the outstanding default balance on their loan. The home is still sold in an auction type setting in these unsupervised foreclosures, but is handled completely by the lending institution’s lawyers or agents.

 When a borrower falls behind on monthly mortgage payments, they run the risk of defaulting on their home loan. Once a buyer defaults on their mortgage, the financial institution holding the mortgage on the home may begin a process known as foreclosure. Foreclosure is the financial institution’s right to protect their interest should a borrower not be able to keep up with the required payments on their home. 

This process can be extremely emotional and difficult to deal with as entire families are involved. The foreclosure process normally begins with the financial institution sending a letter to the borrower, this letter is to inform them of the potential foreclosure. The borrower is given a set amount of time to cure the debt or foreclosure proceedings may begin. If the borrow does not reply to the notice or cannot make the required payment on the loan, the financial institution’s next step is to file for a court order. In recent history the foreclosure process would take a considerable amount of time to complete, usually taking two years with no interference. With the spike in foreclosure rates in the past year foreclosures have become a lot more efficient, reducing the time frame to roughly 1 year to completion. The minimum time frame from the lender filing a complaint to the auction date is usually 6 months. It is also important to remember that during all foreclosure processes the borrower is the only person authorized to occupy the premises. Lending establishments often make threats about forcefully removing the occupants from the residence, but is mainly used as a tactic to get the borrower to pay the outstanding balance immediately.

Being recession-proof means being prepared in case you lose your job. What if, no matter how amazing an employee you are, you get laid-off? You must have a financial backup plan. My rule is to have at least three months of expenses saved in case something happens. The optimal amount of savings is six months but I know many find that unrealistic. If you can do six months, however, all the better.

You need to calculate ALL of your expenses and start saving immediately. Here is a list of items you must not forget:

1. Mortgage or rent
2. Gas and electric
3. Gas for the cars
4. Groceries
5. Health insurance (be prepared to pay double through COBRA
6. Car insurance
7. All utilities (home phone, internet, cell phone, cable, etc…)
8. Entertainment (you’ll need to cut back but you also want to have some fun)
9. Misc monthly expenses such as gym memberships, internet hosting, etc.

This is only a brief list. Create a spreadsheet and list everything. Then, add up your expenses and then multiply by three. If you have that amount saved, you’re in great shape; now try to save for six months! If you do not have that amount saved, do yourself a favor and start saving today!

Add 120% value and promote yourself
Make sure you are adding value at work in everything you do. Always strive to fulfill 100% of what is in your job description and then do 20% more. In addition, you may want to go back to school. Earn your undergraduate degree, your MBA, etc.. Do what needs to be done to show your employer that you are serious about your job, your performance, and the company’s bottom-line.

Finally, Promote your value. Make sure your boss and your boss’s boss know that you are a 120% employee.

Be prepared to make a change
Update your resume. Create a few canned cover letters so if a position opens in a great company, you can act immediately. Tap into your network of friends, family and colleagues in other companies. In tough times, you want to make sure that if you are let go, you can find a position as fast as possible. That means preparing before the unlikely lay-off occurs.

Think long-term
Your purpose is to preserve your career, not jump around “willy-nilly”. While you are preparing for a change, that’s all you are doing; preparing. You are refreshing your network and putting out feelers. If an opportunity arises while you are in your current position, think long and hard as to whether you should take the new job. Ask yourself if the new position is a good career move. Analyze the new position as if the economy was in fantastic shape.

I’ve seen co-workers panic and start job searching right when the rumors of lay-offs begin circling the water coolers. They post their resumes everywhere and start interviewing. I had a few friends leave their jobs to go to another comapny only to get laid off by that company a year later.

If you have three to six months in savings, there is no need to think short-term. Think long-term.

Be Nice
Huh? What does this have to do with being recession-proof? If you are a 120% employee, you are doing what is necessary at a task level to stay recession-proof. There is an old adage that states, “People buy from people they like.” Guess what? People also hire and keep people they like as well! Be friendly and supportive of your co-workers. Provide a helping hand at all times. Be nice. Be professional. When you must take a stand against someone, do so in a manner that builds the other person up and does not tear them down.

Why is this important? Imagine the following scenario. Your name is Joe. Your boss is asked to lay-off ten people. She sits with her boss and tells him, “I analyzed everyone’s performance and I need to keep Joe. Not only does he perform at the highest level, he is also a real cheerleader. He helps other members of the team and he is motivating to be around. Without him, many of the other team members we keep may get demoralized. Frank has similar numbers to Joe, but he’s harsh and abrasive. He seldom helps when asked for help, and to be honest, not many people like him.”

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created in 1933. It provides deposit insurance which guarantees the safety of checking and savings deposits in member banks, currently up to $100,000 per depositor. The vast number of bank failures in the Great Depression spurred the United States Congress to create an institution to guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund (DIF).

The list includes banks which have failed since October 1, 2000.

Bank Failures in 2008: 13