This action might not be possible to undo. Are you sure you want to continue?
Introduction…………………………………………………………… 3 What is Foreclosures?........................................…………….. 4 How foreclosure proceedings are born .............................. 7 What leads to foreclosures………………………. ……………... 8 Who can foreclose your property?...............…………………. 9 Tax liens and foreclosures………………………………………. 10
Duration of the foreclosure process……………………………. 12 How to avoid a foreclosure ….…………………………………… 13 Foreclosures… Experiences and Queries………. ……………. 23 Conclusions………………………………………………………………25
The concept of Foreclosures has been gaining large scale popularity in recent times. However there are many amongst us who are unaware of the various factors and situations that lead to Foreclosures and how one can avoid the same. To know more it thus becomes necessary to gain adequate knowledge in this field. Like what are foreclosures… What leads to foreclosures, the laws that regulate homeowners and money lenders, what are the various procedures that one needs to know when involved in foreclosures etc. In this book we will help you in understanding the various integrities involving foreclosures and how you can stay away fro the same.
house owners across the world have been forced to face foreclosures. Foreclosures is a term associated with loosing the ownership rights of one’s house or property or failing to pay the mortgage for the same. It is here that judicial and non judicial foreclosures come into reference. Judicial foreclosures are foreclosures that are controlled and executed by the court. In most cases the borrower is a house owner who had accrued his property with the aid of loans. Believe it or not the present economic slump is also a rendering effect of the foreclosures that have been happening over a period of time. This generally happens when a person holding a property or house is unable to pay for the mortgage value for the same. the lender looks for recovering the lost amount in these cases by selling off the borrowers property. In this case the lender can take over the property directly with the help of court intervention. while the procedures would be controlled and guided by the court. Loans taken by the borrower for purchase of property could be from a financial institution or bank. As soon as the borrower fails to pay the loan amount he or she becomes a “defaulter”. As soon as the borrower becomes a defaulter. This will result in a decrease in credit for the borrower who becomes a looser in the long run. So there are quite a few legal formalities involved. Mortgagee or agents would conduct the process.What is Foreclosure? Ever since the real estate boom suffered a major setback since 2006. . which due to some reason he is unable to pay back in time. Foreclosure is technically defined as a right of redemption on a property. Thus it becomes necessary for a third party intervention in these cases.
Those purchasing foreclosed property via auction will make a huge gain if they manage to purchase a high value property at a cost lower than its market price. However. Foreclosures surely help borrowers to meet their loan deficit. In cases where the bank takes over the property one would have to wait till the bank finds a perfect buyer for the same. It has been noticed that owners of a property try to avoid the lengthy and elaborate procedures involved in Foreclosures. Specially borrowers having a history of bad credit will find it very difficulty to avail loans.In case of non judicial foreclosures. the biggest benefit of Foreclosures is that one can purchase a relatively high priced property at a low cost and then sell off the same at a profit making rate and make huge gains! . Though there are institutions to assist you with foreclosures yet for borrowers with bad credit the interest rate can turn out to be pretty high. the final decision is generally taken by the mortgagee or lender. No matter what. After the borrower receives a notice from the sheriff in case of judicial foreclosures… The auctions would be conducted at the court hall with some legal formalities held between the lender and the borrower. The foreclosure would occur through a public auction system.
.How Foreclosure proceedings are born Proceedings for Foreclosures commence only after it is confirmed that no further monetary dealings are possible between the borrower and the lender. However even this should be in order as the court too has a set of rules for foreclosures and evictions which must be followed. yet if this does not work out and the borrower continues to miss the payments and avoids contact. based on the acceleration clause… Which is a kind of mortgage note that says that upon failure to make the monthly payments the entire amount held as due by the borrower will be treated as full payment to be made on demand along with it’s calculated interest rate which will be added. In a situation where the foreclosure for your property will be handled by a bank. the court can force you to leave your house with an order. Only when there is judicial intervention. Basically Foreclosure proceedings start when a borrower misses the mortgage payment and all other associated payments related to the property he owns. it becomes necessary for you to find out from the bank as to when they will start the proceedings for the same. If the bank is involved it will first definitely try and work out towards finding a solution with the borrower so that the foreclosure can be avoided. It will first send a note to the borrower demanding payment. It may take as long as 90 days at times for your proceedings to start. the bank will resort to legal action. so it is best to call up or contact your bank and find out as to when they will start off the proceedings so that you are mentally prepared for the same and have made alternative arrangements to move out. Foreclosures do not give anyone the permission to throw you out of the house at no notice. If the borrower is completely bankrupt and can find no ways to repay the loans he had taken for his property he is left with no other option rather than Foreclosures.
. the court will have every right to give legal permission to the bank to begin Foreclosure proceedings by order. it is indication enough that you should contact your attorney and proceed with your legal formalities regarding the same as this marks the starting of Foreclosure. a court case commences and if the borrower is found guilty of missing payments. After the foreclosure of the property has been announced and advertised in local media. the property would go to the highest bidder under auction. Yet after this if there is no response regarding payments from the lender and the notices are ignored.Once you receive the mortgage note from the bank. The banks next step would be to send across the Notice of Intent to Foreclose with the aid of the sheriff and court.
What Leads To Foreclosures A certain number of missed monthly payments for your loan can lead your property to foreclosure: The number of payments you can miss depends on the kind of loan you have. . To prevent such a situation you must set up a home equity credit line to lock your interest rates. Missing paying up a mortgage payment is close to a serious criminal offense and is definitely not as simple as missing a credit card payment. After 3-4 misses you can be rest assured that the lender be it a bank or any other financial institution will start foreclosure proceedings against you. The more the mortgage loans you miss the more the difficult it will be for you to avail these emergency loans that may help save your house from foreclosure. The first miss of payment itself is an indication that you are paving the way for foreclosure of your property. Evading a mortgage payment can affect your credit and evade you from getting further loans that may be needed by you to save your house from being sold out in auction. This will give you the opportunity to get fast cash in cases of emergency. This would be stated in your mortgage contract as to how many payment you can miss before a Notice of Default is filed against you. Avoid missing payments in a row as this will speed up the foreclosure procedure for you. You can be rest assured that a Foreclosure proceeding would be started against you after you have missed a maximum of four mortgage payments.
legal notices are put up in public stating the details of the property in question that is to be put up for an auction. Once a foreclosure has been declared. which is used as collateral. This would begin within 90 days after you have failed to make your mortgage payments and your property has been declared for foreclosures. would be amongst one of the first people to foreclose your property.Who can foreclose your property? Once your property has been declared as a Foreclosure property the proceedings would immediately commence against you… Mortgage holders and other lien holders who hold interest in loans on your property. The sheriff can issue a forced foreclosure and eviction if the homeowner fails to make the payments even after repeated warnings and ignores all eviction notices. Auction houses would ultimately foreclose your property. . Banks and other financial institutions from where you had procured a lump sum loan for your property and then had failed to pay them back the monthly installments for the same are also liable to put up your property for a foreclosure with assistance from the local court pr judiciary.
In case of Foreclosures tax liens are generally imposed upon real estates that the property owner ha to pay up under all circumstances even if the tax imposed upon him or her was actually incurred by the prior owner of the property.Tax liens and foreclosures Once your property has been declared for Foreclosure and the proceedings against you are started a “tax lien” is bound to be imposed upon you. However with every right to demand the same from their client. the mortage company is bound to pay up the same in his or her behalf. In case of the property owner using the services of a mortgage company. A tax lien is a type of tax imposed on property by legal institutions to secure payments of the respective taxes. A property owner has the rights to make these payments directly or has the option to utilise the services of a mortgage holder via an escrow account. These could be taxes taxes that have been imposed on real or personal property that are a result of one failing to pay income tax or other associated taxes. is paid off during the closing of deal from the sale proceeds. . There are various methods by which tax lien related payments could be made. If this is not done the mortgage company might end up making a loss in its value of mortgage lien if the taxing agency sold out the property to meet unpaid taxes foreclosure. In cases where the property owner sells off his property before foreclosure with government aid. the company is liable to receive all notices related to the property and its payments and even if the property owner does not possess an escrow account. In some cases the mortgage company can go as far as creating an escrow account for their clients so that they can make their payments through the same. the tax lien if any.
Every government ensures that property taxes are paid by property owners unless they want a tax lien issued against them.Tax lien comes inti focus when the it is not paid prior to foreclosures. Real estate owners however are big time gainers when it comes to tax liens. The real estate boom that happened in recent years is in fact a result of tax liens being imposed on properties at prime locations whose owners had failed to pay up the property taxes due to some financial crisis or personal problems. thereby becoming owners of prime properties at strategic locations which they can later claim a much higher price for to whomever they decide to sell the same. As in such a sitiation the property could be seized off and sold off at a foreclosure. For a purchaser. it becomes mandatory to check on a property that he plans to purchase especially if via foreclosures for any associated tax liens. The real estate developers who generally have a lot of money in hand make an offer to the property owners to purchase this property and pays off all his tax liens. All they have to do is list out such properties around from which they can largely benefit. In case of personal properties it becomes mandatory for the present owner to pay up all related taxes as he will not be permitted to even sell his property unless all related taxes to the property has been cleared by him. unless he wants to fall into numerous legal clichés associated with the same and end up paying tax liens for expenses he has not incurred but are a result of the previous owner being a tax defaulter. .
Mortgage companies would start the foreclosure process generally 3.6 months post missing of the first mortgage payment.Duration of the foreclosure process The question that troubles most property owners involved in a foreclosure process is the duration that would be taken to execute the entire process. Estimating a probable time frame: . The property owner whose property is to be foreclosed must be alert of the same so that they are well prepared to face the situation. most money lenders are kind enough to provide property owners a second chance by giving them almost 3-6 months in hand to make necessary arrangements for themselves or making necessary provisions to evade a foreclosure sale of their property. Property owners fear how long it will be for them from the time they receive a foreclosure notice from the sheriff for the auctions to happen and the property deal to be closed. What does the duration of foreclosure depend on? The duration of a foreclosure depends largely upon the governing body or state and its legal laws that would decide when the foreclosure proceedings would start and end once the property owner has missed a mortgage payment. Having lack of knowledge of the time taken for the entire foreclosure property makes it difficult for them to plan any action or resort which could help them stop the foreclosure sale of their respective property.Though the stated period is 30 days after first missed payment. . .
The sale of property would occur at a county courthouse. This would lengthen the foreclosure procedure by months if you manage to keep your bank occupied with various paper work related to foreclosure or even make an attempt at resolving the foreclosure sale. The actual eviction from the property would only occur after the sheriff sale is over. . Not having adequate knowledge makes them foresee financial plans that they could have undertaken as a last minute decision to save their property from foreclosure. By avoiding regular contact with the bank one would only speed up the foreclosure sale as the bank would assume that you are avoiding making of any payments.. Vice versa they could even end up being thrown out before they even realize in cases where the sheriff has taken prompt action. .The actual foreclosure sale would only happen two to three weeks or even months after the sheriff has declared and passed a notice on the property in question as a foreclosure property. This is to give the homeowners adequate time to relocate and plan their future or in extreme cases they can aim at refinancing or repaying their loans.If you are a smart property owner who has fallen into a foreclosure situation. This must be giving you an idea of how important it is to have an idea about the time frame regarding foreclosures. you can delay the entire foreclosure process by months by being in constant contact with your bank or financial institution. Why is it necessary to have an idea about the time frame for the foreclosure procedures? Most property owners who are involved in a property dispute are unaware of the exact time that they would avail in case their property is put up for foreclosure sale. This happens after the bank has secured a court order for eviction. This could take months to occur at times.
After all every one has numerous dreams and aspirations around their owned property and would not like to simply hand it over to a third party. Well… you don’t have to worry now as numerous options are slowly emerging for property owners which they can adapt to in order to prevent foreclosure sale of their property. There may have been some financial crisis or some unavoidable circumstances involved for which the property owner had failed to pay the mortgage loan resulting in a foreclosure. .How to avoid a foreclosure Who would like to loose their property through foreclosure sale? Not many. We will be giving you some interesting tips on how to avoid foreclosures on your property in this chapter. the first step that you ought to take is to contact your financial advisor or a legal firm which is well experienced in handling a foreclosure situation to guide you through the various options available to you. Apart from this you can look up numerous websites on the net for advises or read up blogs of people who have been victims of a foreclosure sale and have come out of it. If you have plans to avoid a foreclosure sale of your property. These will give you a fair idea on how to proceed further.
. they're much more interested in the money they make off your interest. Explore opportunities for a reinstatement. That is if you can manage to pay off the entire pending amount as a whole within a certain date. 4. To begin with get in touch with a counseling agent to advise you for a home loan modification to reduce your monthly EMI’s for home loan so that you are able to retain your house. Be it your bank or any other financial institution from where you have availed the loan in question. 3. 2. If you're unable to make your mortgage payment. increasing the likelihood that you'll lose your home for sure. Connect with your money lender to help work out solutions to prevent a foreclosure. rather than the money they'll lose on your home foreclosure. Borrowers who seek foreclosure help early are much more likely to work out a solution. Based on your situation. no matter how dire their situation. Ignoring the bills will only make matters worse. call your lender immediately in order to stop foreclosure. Mortgage companies want to avoid foreclosure as much as you. Who knows you can suddenly get a bulk amount from company bonus.How can you avoid foreclosures? 1. profit or a tax refund. your lender may be able to provide the foreclosure help that you need. Go for an agreement for forbearance: That is the lender allowing the borrower to reduce or minimize the mortgage payments for a time till options for payments are worked out on the current loan.
Plan a repayment plan with your money lender. 7. Or by modifying the interest rates from variable to fixed. Mortgage insurances are insurances issued against your loan amount which you can use in crisis situations as a foreclosure whereby you could obtain some amount of money to save the present situation with your mortgage loan insurance. Request for a mortgage modification. An insurance claim can delay your foreclosure for months. till you have money organized to pay your actual loan amount. Changes could be brought about by incorporating the amount of the missed payments into the existing loan balance. One could also prolong the number of years for repaying the loan thereby reducing the monthly loan expenditure. Mortgage modification is the process of working out an agreement with your money lender. 6. All you need to do is sign a interest free promissory note to enable a lien to be imposed upon your property till you are able to pay off the same. This repayment plan would be so structured so that your monthly payments are made much lower and affordable till you have covered up most of your losses and is in a better financial position to be able to pay off your loans at the actual amount once again. Make sure you opt for mortgage insurance. whereby you could request your money lender to change certain terms on your loan document on the basis of which you could still pay your monthly loan amount at an affordable rate. .5. You would qualify if Your loan is between 4 and 12 months delinquent.
At an initial stage your lender might agree to receive only a part of the regular installment paid by you at a monthly basis and later 10. Avoid missing a payment if you don’t want to fall into the foreclosure trap. .8. Staying in touch can enable you to work out a solution. One of the best ways to prevent a Foreclosure is to stop the filing of Notice of Default. Ie. Your lender would definitely work out an option for you. Giving you adequate time to organize for your pending payments. 11. Never ignore the problems that could end you up face to face with a foreclosure. You money lender may opt for forbearance ie. he may forego your current payments for a time. Contact the State Government Housing Office for any queries and information’s that you would require regarding foreclosures. 9. Your money lender may also spread out your pending payments over a large period of time. In rare cases the lender can give you a debt forgiveness. The only way to prevent it is to be in constant touch with your money lender and not to avoid him. ie. Be open to negotiations and conversations with your lender at all times. Having adequate knowledge about foreclosure and its associated laws will give you lots of opportunities to plan a way out of this crisis situations when they arrive.
Get connected with your state housing development counselor at the earliest. Plan your savings and expenditures. gold or silver jewellery with high resale values. shares or savings that could be used at this point of time to make your mortgage payment and save your house. They can go to the extent of explaining you every detailed law associated with foreclosures. 14. 16. any policies. Cut down on restaurants and movies for a time till you have made up for your losses. If you can add an extra income by doing a part time job to meet your mortgage payment take it up! After all an extra effort can lead to an extra income that can help you avoid a foreclosure. Assets could be in the form of a car.12. plan your finance so that you could avoid the same and in some cases they could also become the mediator between you and your money lender in situations where you would not like to face each other. A foreclosure can be avoided if you have worked through your years to build your assets. Take up part time jobs. Try and cut down your monthly expenses so that you could make your mortgage payments. Do not fall for foreclosure consultants who go outright to prove to you that a foreclosure could be avoidable if you paid them a certain . 15. When in a crisis situation. They would be bound to find a way out for you. 13. spend only on necessities rather than luxuries and other impulse purchases. You can resort to delaying your credit card payments as these are unsecured and can be paid in easy installments and pay your monthly mortgage amount instead. In the United States of America there exists HUD or the Housing and Urban Development association in every state which help homeowners in times of crisis through free counseling on how to avoid foreclosures which are very helpful.
These are scams that generate from profit making organizations who tempt you and try to convince you that they would avoid a foreclosure for you but end up extracting a heavy amount from you instead. Exchanging each others thoughts and experiences might help you to find a way out of foreclosures. 19.debtworkout.com and . If you are a novice in this it would be best for you to recruit a foreclosure attorney. 17. 20. I am sure these will be helpful as you will get an opportunity to interact with people who have experienced or are about to experience a foreclosure deal.fix-debt. Surf the net for various blogs and advices on how to stop a foreclosure sale.com. You can check out some of the popular websites in this respect like: .stophomeforeclosurehelp. This would stop foreclosure proceedings for a time for you until you have succeeded in planning out an option with the court. . One of the most important factors that could help one avoid a foreclosure is to study your money lender before you select him or her along with the plan he or she is due to put you into. The attorney will guide you on how to avoid a foreclosure with the best options available to you and will also come to your aid with all the necessary paper work required.com. To avoid a foreclosure you could also file for bankruptcy. 18.amount of money. In fact at worse cases you could end up being a part of a foreclosure scam. Instead use that cash to pay back your mortgage loans. .
22. you will have money when you really need it.21. pay back the line and then use it again the next time. SOS… Ask for help! A friend in need is a friend indeed. After all if they really love you they would never allow you to loose your home to a disastrous thing as a foreclosure. These events might prevent obtaining a loan once they occur. There is no limit to options available to avoid a foreclosure. loss of a job or emergency requiring funds fast. When things get back in order. Avoid over use of credit cards. Numerous options can be worked out. 24. This can often be set up for no cost and can lock in rates as low as 4%. Your confidence and determination is what will help you find a way out. In most cases you pay nothing each month if you do not access the line. By setting up a home equity credit line before you ever miss a mortgage payment. So it is very important to be strong minded… headstrong in fact if you want to avoid a foreclosure. You will realize that after a time you are unable to pay your mortgages because you had been busy paying off your credit card bills. relative or close associate. 23. After all you can always pay a friend back that too without an interest when your sunny days arrive again! And you would not have to loose your house to a foreclosure! Do not feel ashamed to ask help from a friend. No one ever expects sudden health problems.especially if you never have to use it. . Your options don’t stop unless you have given up the fight. Just be careful not to use the line for frivolous purposes and you will love your home equity credit line . Just write yourself a check. At least 90% of foreclosures could be prevented or delayed if home equity lines of credit were previously activated. In this crisis period do not forget to take help from a friend who might help you out with the money required to meet your mortgage payments.
Do not run away from your problems. you may be able to get more for your property than what is due on the mortgage loan.25. Assumption: With this option. 27. You can also sell your home yourself if you want to avoid a foreclosure. Rather share your problems with your friends and associates and most of all your money lender. 26. and take over making the payments. They will definitely find a solution for you. Remember options in 90% cases are workable so always take multiple opinions and consultations before you take a decision or are forced to take one. . you would sign over the property to another person. That person would then take possession of your home. Avoid believing in greedy money lenders who lead you to believe in the first go that you have no options left than loosing your property to foreclosures. Options To Sell Your Home: Sell The Home: If there is sufficient equity in the property. It works! Selling your home yourself will get you a higher amount rather than selling your house off through foreclosure at an auction. This way you will definitely get more money from the sale proceeds with which you can purchase a lower or equivalent value property without having to loose out on a whole lot of money and engaging yourself in numerous paper work related to foreclosures and more than anything else all the harassments of your money lender! If you get a good price for your property you can even pay off all your pending mortgages off easily.
Pre-Foreclosure Sale: This option may allow you to sell your property for an amount less than what is necessary to pay off your mortgage loan. Last but not the least even if you have lost your house or property to foreclosure you still have an option to buy it back at an auction even after you are evicted! You can end up being the highest bidder if you are able to organize the cash required to purchase your property under auction during the period when the sheriff plans your foreclosure and entire eviction process. Deed In Lieu Of Foreclosure: This option may allow you to voluntarily return the property to your Lender without further damaging your credit. . 28.
We ended up losing the loan as we couldn’t move forward. In the first year. He was very sick for several months. Legally can my brother foreclose on us when weve made our payments now for 10 months or does he have the right based on the months we missed when my husband was sick and he told us not to worry about it until my husband was better? . and months later had to have a pacemaker installed. Then we tried starting a new loan request with the same company used before and things have changed and they are asking us to produce much more to make this one go through. “My husband and I entered into an agreement with my brother for the purchase of a home on a three year interest only with a balloon note at the end of 3 years. There is still 13 months left on our agreement. followed by a infection in his heart. They have always been applied to the current month due. Since then i have received nasty. We are now 10 months being back on track with a few payments being 14 days or less late. We then got back on track and have made payments ever since. obviously more money out of pocket we cannot come up with. Last February my brother experienced another one of his real estate deals gone sour. I have put up with very regular and very upsetting e-mails from him for six months now. We missed payments during the worst part of his illness basically with my brother's blessing. threatening e-mails that he will come in and foreclose on our home. After getting back on track 10 months ago none of our current payments have been applied to the back payments from when my husband was very ill. I'm not sure where we stand legally. My brother has an escrow company receiving payments on his behalf. my husband had had heart surgery. and the rest being on time.Foreclosures… Experiences and Queries There are many people who have failed to avoid a foreclosure… Here are some queries that have arisen in the minds of some people who are victims of foreclosure. Then he was very adamant that we use a Mortgage Broker "Friend" of his which didn’t work out. lost money and was extremely upset to say the least. We recently had a lender offer us a loan for all by $1900 of the loan just to pay him off and end this but he refused it which was unbelievable to us. The purpose was to give us time to refinance the home in our name within the time period.
I called to fix the problem and was told that there was no problem and it was fixed.00 bill and expect to be able to spend it because it is not the real thing but only a copy. even though you have made payments for the last 10 months. Thanks” . The sale fell through. In all of 2004 I would send in a payment and it would get sent back. The next month (July) I was sent a letter saying that there was no problem and it was also this month that my first automatic payment kicked in. your loan is still past due. Can they legally foreclose after only two missed payments when they clearly had a hand in the default. which means that on paper. even if the contract is a certified copy? Anyone can make a copy and get it certified. “I initiated a mortgage note a while back and it was subsequently sold to Chase Manhattan. It made it impossible to figure out the problem. Do they have to prove that they are the holders in due course of the note (meaning are they required to show me the ORIGINAL contract and not merely a copy of the contract. they would usually insist that you pay the past payments and bring the loan current before you can continue making regular monthly payments again. There was an issue with a bounced check for June 2002. If you get back in a position to pay them. you have still not paid the payments that you had missed. Your brother could possible initiate foreclosure at this point. EXAMPLE: one cannot take a certified copy of a $100. Question: 1. I would double it up for the next month and it would be cashed. This happened until September 2004 when they contacted me and said they were going to foreclose. 2. I contact Chase again multiple times and each time was told a different month that the problem had arisen. In your case. The payments were taken out until February 2005 and wasn't taken out that month due to a potential investor sale.Answer: Most mortgage lenders will initiate foreclosure if you miss payments for 3 consecutive months.
and the judge’s opinion of the case. I would advise you to consult with an attorney in your area who can provide you some guidance regarding your state specific foreclosure laws. Regarding what documents the creditor is required to produce to win a court case for foreclosure. if the bank can prove that it is the rightful owner of the note by producing a bill of sale or other documentary evidence. In this market in which mortgages are sold left and right. foreclosures often proceed without original copies of the mortgage note. can represent you in court if Chase does try to proceed with foreclosure. Generally.Answer: The answer to your question would greatly depend on the foreclosure laws in your state and what requirements the lender must meet in order to proceed with foreclosure. you should consult with an attorney to discuss this matter and to help you determine the best course of action given the situation you are facing. meaning they are required to provide you with an opportunity to bring the loan current before they can foreclose on your property. . it may not be necessary for it to produce an original copy of the mortgage note. that will again depend on your state’s laws. Again. if needed. court precedents in your state. and who. the lender is required to give you a period of time to cure the default.
Thus it has become increasingly necessary to find out ways to stop a foreclosure sale. that prevention is always better than cure… So it would always pay to stop a foreclosure from happening rather than waiting for it to happen and then spending the rest of your life fighting it out. . Foreclosure is the process via which the lender goes about to claim back your house. One must know that a property purchased on loan from a bank is actually an asset that has been set as a liability with your bank as long as you are paying the mortgage loans. however if you stop paying the loans remember that the bank has every right to claim your property as it is the asset against which the loan has been issued o you. Thus if one is not aware on how to avoid a foreclosure the results both mental and emotional can be disastrous if a foreclosure situation becomes unavoidable. Only after all missed payments have been repaid if there is any money left does it go to the former homeowner who can then utilize the same to work out alternative plans for finding a new place for himself. Remember. until all liens and encumbrances on the property are paid.Conclusion In recent years foreclosures have been spreading across the world like fire. The United States of America has been most affected by foreclosures in recent years where a number of people have lost their property due to the failure on their part to pay back their mortgage loans. Especially during this economic meltdown. The money from the proceedings of a foreclosure sale will be used t pay back the pending amounts due according to their priority beginning with real estate taxes followed by mortgages missed then lien holders or attaching creditors.
TO SUM UP… YOU CAN AVOID A FORECLOSURE BY: Getting in touch with a counseling agent Connecting with your money lender Exploring opportunities for a reinstatement. Going for an agreement for forbearance: Planning a repayment plan with your money lender Requesting for a mortgage modification. .
Never ignore the monetary problems. Opting for mortgage insurance Avoiding missing a payment Stop the filing of Notice of Default. Contact the State Government Housing Office for any queries Stay connected with your state housing development counselor Plan your savings and expenditures. Build your assets that can help you in times of need like a foreclosure .
Recruit a foreclosure attorney Surf the net for options on how to avoid a foreclosure study your money lender before you select him Don’t stop unless you have given up the fight. Do not fall for foreclosure consultants File for bankruptcy. Take up part time jobs. .
Avoid believing in greedy money Sell your home yourself buy your home back at an auction ************** . Avoid over use of credit cards. Activate your home equity lines of beforehand SOS… Ask for help! Do not run away from your problems.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.