One of the options that most of the people who are looking to buy homes go for is home foreclosures. A foreclosure refers to a legal process that is specified that a lender can pursue in order to recover the amount of money owed by the borrower who has since stopped paying through the forceful sale of their assets that were listed as collateral for the loan. This is usually preceded by the mortgage lender obtaining a termination of the equitable rights by the borrower through a court order or operational law. There are a host of reasons as to why borrowers may be unable to make their payments. In fact, some of these reasons push some people to voluntarily opt for home foreclosures. These include the loss of employment meaning that the steady flow of income has been interrupted. Others may opt for it when they have been forced out of employment due to medical conditions that are incurable. Being in debt that results in having too many bills also contributes to foreclosures. A job transfer to a different state, wrangles with your co-owner or even divorce can lead to this.
Foreclosures are usually initiated by banks that file for the same on specific property through the judicial system of a particular state. Generally, there are three types of home foreclosures namely the strict foreclosure, power of sale and judicial foreclosure. The strict foreclosure is where a public auction option is eliminated and the property that is foreclosed it moved to a mortgage holder directly. This kind of foreclosure is only allowed when the balance on the mortgage is bigger compared to the value of the property.
The second type of foreclosure is the judicial foreclosure that allows the borrower a thirty day period to make payment from the day the foreclosure notice is issued. If the borrower fails to make the payment and this period elapses, the property is automatically put up for a public auction and subsequent ownership transfers from the person who has defaulted to the one who wins at the auction. Finally, there is the power of sale foreclosure that is also referred to as non-judicial foreclosure. This is particularly applicable the borrower used a deed of trust when securing the property. Alternatively, it may also be applied where a power of sale clause is used in the mortgage terms. Thus, the non-judicial foreclosure has the process covered within the loan document so that the lender will only mail you on their intention to begin the process of foreclosure on your property.
When you are facing an imminent home foreclosure, you will need to critically look at your financial situation in order to determine the best possible option. This may call for a review of your expenditure as well as budgeting if it will help you make your payments. You will also do well to ensure that you are in contact with your lender on a regular basis especially when they contact you. In conclusion, although home foreclosures may be necessitated by factors that are beyond your control you are at liberty to explore all the options that can prevent it.
Benkiran Law Firm, P.A. is an Orlando Business Attorney who is also an Orlando Foreclosure Lawyer. Stop by their site for more information on all business and personal matters
Each state has foreclosure laws that dictate the manner of foreclosure in that state. One of the most important distinctions in a foreclosure process is whether the foreclosure is conducted through the court system (judicial) or outside the court system (non-judicial).see more at: judicial foreclosure
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