| Past Due Mortgage Payments And Foreclosure |
| Articles - Mortgage |
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Foreclosure is not a circumstance that any homeowner wants to face. Foreclosure in a nutshell means having to deal with being forced from your home. When a homeowner stops making mortgage payments and the bank has made all efforts to collect, foreclosure is the final frontier. Once the foreclosure process begins it is very difficult to stop, in many cases impossible even.
Foreclosure is not a circumstance that any homeowner wants to face. Foreclosure in a nutshell means having to deal with being forced from your home. When a homeowner stops making mortgage payments and the bank has made all efforts to collect, foreclosure is the final frontier. Once the foreclosure process begins it is very difficult to stop, in many cases impossible even. It is only after the bank has tried everything it possibly can to collect payments that the wheels are set in motion. Normally a foreclosure does not occur after a single missed payment, but rather after a string of missed payments. Per the original mortgage agreement, your house is the collateral securing the loan, which means that the bank has the right to take possession of your home. When you signed your mortgage documents you pretty much pledged that if you failed to pay as agreed the bank could have your home. Normally the foreclosure process begins with letters or telephone calls demanding the past due payments. The next phase is the actual legal proceedings. It can take any where from 2 to 3 months to go through the entire foreclosure process. The bank files a formal complaint with the court and the homeowner is served papers. Unless the homeowner can demonstrate that no money is owed the court will most likely rule in favor of the bank. Once the court session are done the title to your home is sold off. You are then required to leave the home. In numerous cases homeowners refuse to leave and have to be removed by the sheriff. One way to stop a foreclosure is to determine if any laws were violated when your mortgage was originated. The only way to do this is normally by having a forensic loan audit. Foreclosures resulting from loans with illegal conditions are also not enforceable. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. To learn more information about loan modification services contact Janian & associates for a free consultation. |