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Contents

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
Introduction

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.
What is Foreclosure?

Ever since the real estate boom suffered a major setback since 2006, 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. 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.

Foreclosure is technically defined as a right of redemption on a property.


This generally happens when a person holding a property or house is unable
to pay for the mortgage value for the same. In most cases the borrower is a
house owner who had accrued his property with the aid of loans, which due
to some reason he is unable to pay back in time. 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, the lender looks for recovering the lost
amount in these cases by selling off the borrowers property. This will result
in a decrease in credit for the borrower who becomes a looser in the long
run.

Loans taken by the borrower for purchase of property could be from a


financial institution or bank. So there are quite a few legal formalities
involved. Thus it becomes necessary for a third party intervention in these
cases. 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 this case the lender can take over the property directly with
the help of court intervention. Mortgagee or agents would conduct the
process, while the procedures would be controlled and guided by the court.
In case of non judicial foreclosures, the final decision is generally taken by
the mortgagee or lender. The foreclosure would occur through a public
auction system. 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.
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.

In cases where the bank takes over the property one would have to wait till
the bank finds a perfect buyer for the same. No matter what, Foreclosures
surely help borrowers to meet their loan deficit.

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. 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. However, 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!
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. 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.

In a situation where the foreclosure for your property will be handled by a


bank, it becomes necessary for you to find out from the bank as to when
they will start the proceedings for the same. It may take as long as 90 days
at times for your proceedings to start, 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. Only when there is judicial intervention, the court can
force you to leave your house with an order. However even this should be in
order as the court too has a set of rules for foreclosures and evictions which
must be followed.

Basically Foreclosure proceedings start when a borrower misses the


mortgage payment and all other associated payments related to the
property he owns. 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, yet if this does not work out and the borrower continues to miss
the payments and avoids contact, the bank will resort to legal action. It will
first send a note to the borrower demanding payment, 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.
Once you receive the mortgage note from the bank, 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. The
banks next step would be to send across the Notice of Intent to Foreclose
with the aid of the sheriff and court.

Yet after this if there is no response regarding payments from the lender
and the notices are ignored, a court case commences and if the borrower is
found guilty of missing payments, the court will have every right to give
legal permission to the bank to begin Foreclosure proceedings by order.
After the foreclosure of the property has been announced and advertised in
local media, the property would go to the highest bidder under auction.
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. 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.

The first miss of payment itself is an indication that you are paving the way
for foreclosure of your property. To prevent such a situation you must set up
a home equity credit line to lock your interest rates. This will give you the
opportunity to get fast cash in cases of emergency.

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. You can be
rest assured that a Foreclosure proceeding would be started against you
after you have missed a maximum of four mortgage payments.

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. 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.

Avoid missing payments in a row as this will speed up the foreclosure


procedure for you. 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.
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, which is used as collateral, would be amongst one of the
first people to 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.

 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. Once a


foreclosure has been declared, legal notices are put up in public stating
the details of the property in question that is to be put up for an
auction. This would begin within 90 days after you have failed to make
your mortgage payments and your property has been declared for
foreclosures.

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.

A tax lien is a type of tax imposed on property by legal institutions to secure


payments of the respective taxes. 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.

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.

There are various methods by which tax lien related payments could be
made. 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. In case of the property owner using the services of a mortgage
company, 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, the mortage company is bound to pay up the same in his or
her behalf. However with every right to demand the same from their client.
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. 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 tax lien if any, is paid off during the closing of deal
from the sale proceeds.
Tax lien comes inti focus when the it is not paid prior to foreclosures. 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, 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. 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. Every government ensures that property
taxes are paid by property owners unless they want a tax lien issued against
them.

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. 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, 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. All they have to do is list out such
properties around from which they can largely benefit.
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.
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. 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.

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. 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.

Estimating a probable time frame:

- Mortgage companies would start the foreclosure process generally 3- 6


months post missing of the first mortgage payment.

- Though the stated period is 30 days after first missed payment, 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.
- If you are a smart property owner who has fallen into a foreclosure
situation, you can delay the entire foreclosure process by months by being
in constant contact with your bank or financial institution. 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. 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.

- 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. The sale of property would occur at a
county courthouse.

The actual eviction from the property would only occur after the sheriff sale
is over. This happens after the bank has secured a court order for eviction.
This could take months to occur at times. 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.

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.

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. Vice versa they could even end up being thrown out before
they even realize in cases where the sheriff has taken prompt action.
This must be giving you an idea of how important it is to have an idea about
the time frame regarding foreclosures.
How to avoid a foreclosure

Who would like to loose their property through foreclosure sale? Not many.
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.
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. 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.

If you have plans to avoid a foreclosure sale of your property, 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. These will
give you a fair idea on how to proceed further.

We will be giving you some interesting tips on how to avoid foreclosures on


your property in this chapter.
How can you avoid foreclosures?

1. 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.

2. Connect with your money lender to help work out solutions to prevent
a foreclosure. Be it your bank or any other financial institution from
where you have availed the loan in question.
If you're unable to make your mortgage payment, call your lender
immediately in order to stop foreclosure. Ignoring the bills will only
make matters worse, increasing the likelihood that you'll lose your
home for sure. Borrowers who seek foreclosure help early are much
more likely to work out a solution, no matter how dire their situation.
Mortgage companies want to avoid foreclosure as much as you; they're
much more interested in the money they make off your interest, rather
than the money they'll lose on your home foreclosure. Based on your
situation, your lender may be able to provide the foreclosure help that
you need.

3. 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.
Who knows you can suddenly get a bulk amount from company
bonus, profit or a tax refund.

4. 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.
5. Plan a repayment plan with your money lender, till you have money
organized to pay your actual loan amount. 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.

6. Request for a mortgage modification. Mortgage modification is the


process of working out an agreement with your money lender,
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. Changes could be
brought about by incorporating the amount of the missed payments
into the existing loan balance. Or by modifying the interest rates from
variable to fixed.

One could also prolong the number of years for repaying the loan
thereby reducing the monthly loan expenditure.

7. Make sure you opt for mortgage insurance. 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. An insurance claim can delay your foreclosure for
months. You would qualify if Your loan is between 4 and 12 months
delinquent. 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.
8. Avoid missing a payment if you don’t want to fall into the foreclosure
trap.

9. One of the best ways to prevent a Foreclosure is to stop the filing of


Notice of Default. The only way to prevent it is to be in constant touch
with your money lender and not to avoid him. Staying in touch can
enable you to work out a solution. You money lender may opt for
forbearance ie. Giving you adequate time to organize for your pending
payments. In rare cases the lender can give you a debt forgiveness,
ie. he may forego your current payments for a time. Your money
lender may also spread out your pending payments over a large
period of time. Ie. 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. Never ignore the problems that could end you up face to face with
a foreclosure. Be open to negotiations and conversations with your
lender at all times. Your lender would definitely work out an option
for you.

11. Contact the State Government Housing Office for any queries and
information’s that you would require regarding foreclosures. 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,
12. Get connected with your state housing development counselor at
the earliest. They would be bound to find a way out for you. 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. They can go to the
extent of explaining you every detailed law associated with
foreclosures, 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.

13. Plan your savings and expenditures. When in a crisis situation,


spend only on necessities rather than luxuries and other impulse
purchases. Try and cut down your monthly expenses so that you could
make your mortgage payments. 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. Cut
down on restaurants and movies for a time till you have made up for
your losses.

14. A foreclosure can be avoided if you have worked through your


years to build your assets. Assets could be in the form of a car, gold or
silver jewellery with high resale values, any policies, shares or
savings that could be used at this point of time to make your
mortgage payment and save your house.

15. Take up part time jobs. 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.

16. 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
amount of money. Instead use that cash to pay back your mortgage
loans. In fact at worse cases you could end up being a part of a
foreclosure scam. 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.

17. To avoid a foreclosure you could also file for bankruptcy. This
would stop foreclosure proceedings for a time for you until you have
succeeded in planning out an option with the court.

18. If you are a novice in this it would be best for you to recruit a
foreclosure attorney. 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.

19. Surf the net for various blogs and advices on how to stop a
foreclosure sale. 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. Exchanging each others
thoughts and experiences might help you to find a way out of
foreclosures. You can check out some of the popular websites in this
respect like:

- debtworkout.com,
- stophomeforeclosurehelp.com and
- fix-debt.com.

20. 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.
21. There is no limit to options available to avoid a foreclosure.
Numerous options can be worked out. Your options don’t stop unless
you have given up the fight. So it is very important to be strong
minded… headstrong in fact if you want to avoid a foreclosure. Your
confidence and determination is what will help you find a way out.

22. Avoid over use of credit cards. 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.

23. At least 90% of foreclosures could be prevented or delayed if


home equity lines of credit were previously activated. This can often
be set up for no cost and can lock in rates as low as 4%. In most
cases you pay nothing each month if you do not access the line. No
one ever expects sudden health problems, loss of a job or emergency
requiring funds fast. These events might prevent obtaining a loan
once they occur. By setting up a home equity credit line before you
ever miss a mortgage payment, you will have money when you really
need it. Just write yourself a check. When things get back in order,
pay back the line and then use it again the next time. Just be careful
not to use the line for frivolous purposes and you will love your home
equity credit line - especially if you never have to use it.

24. SOS… Ask for help! A friend in need is a friend indeed. 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.
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, relative or close associate. After all if they really love you they
would never allow you to loose your home to a disastrous thing as a
foreclosure.
25. Do not run away from your problems. Rather share your problems
with your friends and associates and most of all your money lender.
They will definitely find a solution for you.

26. 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. 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.

27. You can also sell your home yourself if you want to avoid a
foreclosure. 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.

Options To Sell Your Home:

Sell The Home: If there is sufficient equity in the property, you may
be able to get more for your property than what is due on the
mortgage loan.

Assumption: With this option, you would sign over the property to
another person. That person would then take possession of your
home, and take over making the payments.
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.

Deed In Lieu Of Foreclosure: This option may allow you to voluntarily


return the property to your Lender without further damaging your
credit.

28. 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.
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.

“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. The purpose was to give us time to refinance the home in our
name within the time period. In the first year, my husband had had heart
surgery, and months later had to have a pacemaker installed, followed by a
infection in his heart. He was very sick for several months. We missed
payments during the worst part of his illness basically with my brother's
blessing. We then got back on track and have made payments ever since.
We are now 10 months being back on track with a few payments being 14
days or less late, and the rest being on time. My brother has an escrow
company receiving payments on his behalf. 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. They have always been
applied to the current month due. Last February my brother experienced
another one of his real estate deals gone sour, lost money and was
extremely upset to say the least. Since then i have received nasty,
threatening e-mails that he will come in and foreclose on our home. I have
put up with very regular and very upsetting e-mails from him for six months
now. I'm not sure where we stand legally. There is still 13 months left on
our agreement. 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. We ended up losing the loan as we couldn’t move
forward. Then he was very adamant that we use a Mortgage Broker "Friend"
of his which didn’t work out. 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, obviously
more money out of pocket we cannot come up with. 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?
Answer:

Most mortgage lenders will initiate foreclosure if you miss payments for 3
consecutive months. If you get back in a position to pay them, they would
usually insist that you pay the past payments and bring the loan current
before you can continue making regular monthly payments again. In your
case, even though you have made payments for the last 10 months, you
have still not paid the payments that you had missed, which means that on
paper, your loan is still past due. Your brother could possible initiate
foreclosure at this point.

“I initiated a mortgage note a while back and it was subsequently sold to


Chase Manhattan. There was an issue with a bounced check for June 2002. I
called to fix the problem and was told that there was no problem and it was
fixed. 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. The payments were taken out until February 2005 and wasn't taken out
that month due to a potential investor sale. The sale fell through. I contact
Chase again multiple times and each time was told a different month that
the problem had arisen. It made it impossible to figure out the problem. In
all of 2004 I would send in a payment and it would get sent back. 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. Question: 1. Can they legally foreclose after only two missed
payments when they clearly had a hand in the default. 2. 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, even if the contract is a certified copy? Anyone can make a copy
and get it certified. EXAMPLE: one cannot take a certified copy of a $100.00
bill and expect to be able to spend it because it is not the real thing but only
a copy. Thanks”
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. Generally, the lender is required to give you a
period of time to cure the default, meaning they are required to provide you
with an opportunity to bring the loan current before they can foreclose on
your property. I would advise you to consult with an attorney in your area
who can provide you some guidance regarding your state specific
foreclosure laws, and who, if needed, can represent you in court if Chase
does try to proceed with foreclosure. Regarding what documents the
creditor is required to produce to win a court case for foreclosure, that will
again depend on your state’s laws, court precedents in your state, and the
judge’s opinion of the case. In this market in which mortgages are sold left
and right, foreclosures often proceed without original copies of the
mortgage note; if the bank can prove that it is the rightful owner of the note
by producing a bill of sale or other documentary evidence, it may not be
necessary for it to produce an original copy of the mortgage note. Again, 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.
Conclusion
In recent years foreclosures have been spreading across the world like fire.
Especially during this economic meltdown. 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. Thus it has become increasingly necessary to find out
ways to stop a foreclosure sale.

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. Foreclosure is the process via which
the lender goes about to claim back your house. 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, until
all liens and encumbrances on the property are paid. 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.

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.

Remember, 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.
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.


 Opting for mortgage insurance

 Avoiding missing a payment

 Stop the filing of Notice of Default.

 Never ignore the monetary problems.

 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
 Take up part time jobs.

 Do not fall for foreclosure consultants

 File for bankruptcy.

 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.


 Avoid over use of credit cards.

 Activate your home equity lines of beforehand

 SOS… Ask for help!

 Do not run away from your problems.

 Avoid believing in greedy money

 Sell your home yourself

 buy your home back at an auction

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