04 Oct WHAT IS FORECLOSURE?
When a bank or lending institution made a forced sale of your property that is foreclosure. Most often, property owners are using a 3rd party to provide additional money to complete the purchase unless they have the cash to pay the property in full.
This results in a mortgage or the payment that the property owner needs to pay an institution that lends them. In case the property owner did not make the payments, which is part of the loan agreement that they have signed for their mortgage, the financial institution or the lender will go ahead
with the initial foreclosure proceedings. The objective of this process is to take the property to pay for the debt that is owed to them.
Borrowers must be aware that many mortgages have an embedded acceleration clause in the fine print of the contract (see mortgage’s promissory note) that start a premature foreclosure process. This clause allows the bank or the mortgage holder to declare the full value of the loan if the borrower has missed the specified number of payments. The lending institution should
give enough notice before they can invoke this acceleration clause.
This process of foreclosure is a lawsuit filed by the bank to force the selling of the property to fulfill the outstanding debt. In most cases, the court is the one who will order the sale after it has decided on the actual amount due including the accrued interest. The proceeds of this sale will be paid to the outstanding loan. If the loan amount is higher than the sale amount, the owner still must pay for the difference depending on the original terms of the loan.
The owner has the right to pay the lending institution the amount needed to keep the property before the foreclosure sale too.
If you are struggling to pay your mortgage and you, feel that you might default or you fear that you are going to lose your property through a foreclosure, the best move is to consult with a lawyer. There are best lawyers and law firms around who can help you determine other options available, including filing for bankruptcy. In case of the inevitable, the lawyer can represent you in the foreclosure proceedings to make sure that your rights and interests are safeguarded.
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts.