Prevent Foreclosures

Posts Tagged ‘Mortgage Foreclosure’

Question: After the home foreclosure process starts and you get current, does it stop?

I think I will be going into foreclosure here in a few weeks, but I know that in about a month I will have enough money to "catch up" with my mortgage payments. If I "catch up", does my home still keep heading to foreclosure?

Answer: No, absolutely not. If you can make up the house payments that you are behind, along with the extra interest, late fees, and other costs, then you won't go into foreclosure.

The bank sues for foreclosure because you are in default of your agreement to make the mortgage payments. They sue to have the government sell the house out from under you to make good on your commitment to pay the loan or give them the property.

But if you aren't in default any longer, then the bank has no reason to sue you and the home foreclosure process will no longer be in effect. They aren't suffering any damages, and you aren't in breach of the contract if you pay them up to being current and they accept the money.

So, without you being behind on the mortgage, the bank can't sue you to force the sheriff sale of the house to pay back the amounts that you are behind. Of course, that doesn't stop fraudulent mortgage companies from doing exactly that, but that is not the majority of cases.

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You might have heard the term Judicial foreclosure and Nonjudicial foreclosure. They are different processes of foreclosure. One is in court and the other is out of court. Some states allow both judicial foreclosure and nonjudicial foreclosure whereas others may allow only one type. Knowing about different types of foreclosure can help homeowners avoid foreclosure.

What is Judicial Foreclosure? (in court)

A Judicial foreclosure usually occurs when your home loan is secured by a mortgage (as opposed to deed of trust). A judicial foreclosure usually takes longer than a nonjudicial foreclosure. A homeowner in judicial foreclosure, therefore, has longer to come up with ways to prevent foreclosure. Since the court is involved in this process, it ensures that homeowners are less likely to be taken advantaged of by mortgage lenders.  A judge has to sign off on this type of foreclosure.

What is Nonjudicial Foreclosure? (out of court)

When a home loan is secured by a deed of trust, rather than a mortgage, then the foreclosure process can be achieved without the involvement of the court or a judge. Having a deed of trust is worse than having a mortgage in many cases. A deed of trust authorizes the trustee, usually your lender or a title insurance company, to foreclose on the property in case of a default on payment. The lender can then foreclose on your home without the trouble of having to go to court. This can make foreclosure easier and cheaper for them.

A mortgage foreclosure occurs in the states where real estate properties are mortgaged. Some states use trust deeds resulting in trust deed foreclosures. There are ways to stop mortgage foreclosure or prevent mortgage foreclosure but most people usually don't know what to do in mortgage foreclosures situations. There are also many organizations to help with mortgage foreclosure.

Some people obtain bad credit mortgage refinance when in foreclosure. This could make the mortgage foreclosure situation worse so beware of this tactic. When you are facing a mortgage foreclosure, don't try to get a bad credit foreclosure loan mortgage, you can end up in the same situation you are in or worse.

How does mortgage foreclosure work?

In a mortgage foreclosure situation, the borrower signed 2 things: the note or bond which is the evidence that the borrower promised to pay off the debt and the mortgage which is the legal document that creates the lien on the real estate property as security for the debt owed. In case of a mortgage default, the mortgagee or lender will make every effort to collect on the outstanding debt.

What happens in a mortgage foreclosure situation?

When a mortgage default occurs, the lender or mortgage company will send a letter advising the borrower to remit the payment immediately. Many mortgage companies will make several months of attempts to collect on the mortgage payments of delinquent debts. Most mortgage companies would want to work out a payment plan with the borrower instead of ending up with the property in a mortgage foreclosure. If a mortgage payment plan cannot be established, the mortgage lender will hire an attorney to do a mortgage foreclosure. The mortgage foreclosure attorney will initiate the mortgage foreclosure action on behalf of the lender by ordering a mortgage foreclosure search.

What is a foreclosure search?

A foreclosure search is a report from a title company that provides the attorney with info about the property to help him or her with the mortgage foreclosure.

The mortgage foreclosure attorney then files legal documents for the mortgage foreclosure process including a summons, a complaint, and the lis pendens.

• Wells Fargo home mortgage foreclosure
• Countrywide mortgage foreclosure
• Texas mortgage foreclosure
• California mortgage foreclosure