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What Exactly Is Foreclosure?
Foreclosure is the legal way by which a mortgage company can obtain legal ownership of a property. It relinquishes a homeowner from any and all right to the proprety and evicts the homeowner from the premises. Most lenders will initiate foreclosure after you have missed approximately 3 monthly payments. This is the point your"file" will be turned over to their attorneys for processing. These attorneys handle the legal aspect of the foreclosure, and are usually not much help in stopping a foreclosure in process. Your file may also be turned over to your lenders loss mitigation department. Once a loss mitigation expert is assigned to your case, they may attempt to contact you in an effort to resolve the delinquency through various payment options. Many homeowners may discover while negotating a repayment option with the loss mitigation expert, that the pressure on you to stop foreclosure can cause you to agree to something that they really can't afford and won't be able to do anyway. This is caused by the homeowner making promises which usually overextend their financial capability. There may be liveable and possible alternative repayment options that you can actually manage. These are determined by the type of loan that you actually have, how long you have had the loan, your lender, your financial position and many other factors. We are experienced in helping people in these difficult situations. When a homeowner is unable to make the monthly payment on his or her house, this results in a default against the mortgage. The lender will foreclose on the home in order to sell it at a public auction to recover the money owed by the loan. If any money remains after the loan is paid off, the remainder is applioed toward any junior liens and encumbrances in the order of theri priority. Any further excess would be paid to the owner. In many states, there are at least two types of forclosure options available to a lender. (1) Foreclosure on a Deed of Trust (Often referred to as a non-judicial foreclosure) (2) Foreclosure on a Mortgage (Often referred to as a judicial foreclosure) Deeds of Trust (Also referred to as a Trust Deeds) are security documents that are used to transfer "bare" or "naked" title (because of limited rights) from the borrower (Known as the trustor) to a third party, known as trustee. The trustee holds the title for the benefit of the lender (Known as the benificiary) until the borrower pays off the note or lein against the property. The deed of trust is recorded with the county and shows that there is a lein against the home. lenders prefer deewds of trust because foreclosure is swift and easy due to the lack of judicial proceedings that must take place to repossess the home. Mortgages are security documents that, in a majority of states, allow the borrower (Referrred to as the mortagor) to retain title of the property while using the property as security for a loan by placing a lein on the property by the lender, (Referred to as the mortgagee). When the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgaga that,when recorded, removes the lein. A mortgage deed can only be foreclosed through court action. Since most homes have a deed of trust against the property (versus a mortgage), the non-judicial foreclosure is often the most common foreclosure process. For help in dealing with any of these issues please complete our on line form  and we will promptly contact you to discuss ALL of your options and help you put together a plan that could help you stop the foreclosure process and save your home. Risk Free Trial Offer - Click Here to Learn More! |
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