What Is Foreclosure?
Foreclosure is when a lender who currently holds a mortgage on one's home can come in and repossess the home due to a number of reasons but mainly for nonpayment of a mortgage. For those individuals whose home is less valuable than their current loan balance, they may also owe a deficiency judgment as a result thereof.
When it Occur?
The Foreclosure process begins when the homeowner fails to mange payments of the money due on the mortgage at the Specific time of installment payment. This may be due to several reasons. Unemployment, divorce, medical challenges, terms of the loan, sick of property management, and even death.
Foreclosure proceedings typically start with a formal demand for payment which is usually a letter issued from the lender. This letter of notice is referred to as a Notice of Default (NOD). Depending on your state, the lender will issue this notice when the homeowner has been 3 months delinquent on the mortgage payments. Keep in mind that the notice is a threat to sell your property, terminate all your rights in that property and evict you from the premises.
Possible Ways to Avoid Foreclosure
For those individuals who have trouble making mortgage payments on their home and fear foreclosure, it is important to know about other alternatives which may be recommended besides the dreadful foreclosure. Not all of these alternatives will apply to each and every individual but some may prove to be very handy when all is said and done. The first is called a special forbearance.
Can a foreclosure incident be avoided? For many people, the worst thing that can happen to them is foreclosure on the house.....
The special fact is something which may be arranged by the lender whereby the homeowner receives a payment schedule or installment adjustment and may also receive a suspension of payments for a certain period of time. The representative of the lender will discuss options with...