Foreclosure Process

A foreclosure is the process where the property is seized due to the owner’s inability to pay the monthly installments. Delinquency, Foreclosure & Eviction are the various stages that the owner goes through to be forced out of his or her property.

If a homeowner misses the mortgage payments on the first of the month, a late fee is charged on the mortgage amount for the next 15 days. However, if the homeowner misses the payment by 60 days, then a demand letter is sent, noticing and giving them an extension of 30 days to pay the delinquent amount.

Going further, if the homeowner passes 90 days in paying the amount, then the loan is transferred to the foreclosure department. The default notice is then transferred to the county and the same is mailed out to the homeowner within ten days. From here, the homeowner is given another 90 days to make the payment for the delinquent amount.

In case of no payments are made after a period of 90 days, a notice of sale is recorded. According to the notice, the lender will sell the house within a period of 21 days. The copy of notice of sale is recorded on the county and a similar copy is sent to the homeowner. Following the sale of the property, the eviction process starts from the foreclosed owners.

Foreclosure and Eviction Process

Many times due to unfortunate circumstances, several homeowners have to face foreclosure and eviction from there homes. The process can be exhausting process with the family leaving the property and moving to a new place.

Foreclosure is the process of selling a debtor’s property to recover the loan amount. Generally, a foreclosure takes place if the debtor is late behind his/her payments for around 3 to 6 months. If the debtor is unable is pay the amount after this period, banks order foreclosure of the property to recover the loan amount.

Once the property is put for foreclosure, the eviction process law varies from state to state. Some states give a period of one year for homeowners to stay and redeem the property and some states do not have any eviction period. An eviction process generally takes about 2 to 4 weeks, where the homeowner is given the notice to look for another place to live. But once, the notice period gets over, locks are changed and the homeowners are put on the streets if they have not evicted the property yet. Therefore, it is better to look out for a new place before the sheriff comes home for the eviction process.

Evictions – Why Hiring an Attorney can be Beneficial?

Evicting a tenant from your house is not something one looks forward to excitedly. However, for a landlord, it is something, which at many times become unavoidable. And if you are someone who has rented more properties, you are more likely to go round and round the courts to get the eviction proceedings done.

Most of the landlords are of the view that they can handle the eviction process on their own. However, in reality, eviction is a long and tedious process. Hiring an attorney specializing in evictions could be extremely helpful in such a situation.

Going to courts is extremely time consuming. For a busy individual, driving to a court and attending the hearings can take most of the day. Imagine sitting in the court aisles and waiting for your turn. This is where eviction attorneys can help you out. Apart from saving your precious hours, hiring an attorney would also give you a professional edge in your case. Attorneys know the intricacies of the law and can put a better case for you, ensuring that you do not fall to the tricks used by tenants to win the case.

Hire a professional attorney who can represent you in court and help you in winning it against your tenant.

Misconceptions about Loan Modification

Matters related to money are such that you can never be sure of what the future might hold for you. This is one of the reasons why many individuals opt for loan modification. However, there are various myths associated with loan modification. Below are some of the most prevalent misconceptions about loan modification –

Income of the debtor is the only consideration for loan modification – A lot of people are of the view that your income will be considered by the bank. However, it is the total income of the household, including the income of the spouse, as well as, other adults that would be considered by the bank.

Loan modification reduces the principal amount of the loan – This is highly unlikely as lenders will try to only adjust your loan in such a manner that you do not become delinquent. You might get reduced interest rates and deferred payments on some part of the loan but there is no reduction in the principal amount of the loan.

You can qualify for loan modification only if you are behind the payments – This is not true as even if you are making the monthly payments, you can qualify for loan modification as well.

There are various myths associated with matters related to finance. Contact your financial advisors today to get a clearer picture.

Buying a Property after Foreclosure

Foreclosure is never a happy situation as you not only lose your precious home, but it also affects your credit rating badly. However, if you have gone through a foreclosure, it does not mean the end of the road for you. Although it may take a while to arrange funds and build your credit score before again buying a house, if you have planned your finances and investments properly, you can purchase a home for you again even after a foreclosure. Here are some ways through which you can be financially stable and convince the lenders that you are now in a much better condition than what happened 5-6 years back –

• Getting back on the right track after foreclosure is very important as creditors apart from what happened in the past, are also interested in how you can repay the mortgage this time around. Securing a good job is a pre requisite as this will give an assurance to the lenders that you are not going to default again. A decent paying job will ensure that your lifestyle needs are being met and you do not have to rely on any other source for them.
• Start saving money for the future. Once you have been through foreclosure, always think of the future and start saving money for it. The A foreclosed property on your books does have a negative impact on your profile. However, if you have saved adequate funds, you can present that to the creditors. By presenting more than required money for the down payment, you lessen the creditors’ risk and brighten your chances of getting credit for your home.
• In case where the bank refuses to lend you any money, you can go to private lenders. Other option is to go for owner financed homers. There might be some formalities involved but keep these options open as well.
• Getting a credit card is also a good option and you need to ensure that there are no defaults in the payments. This can prove to be highly valuable as you will have something positive to show to your creditors.

Moving after foreclosure may take some time, but you can definitely come out of it. Start afresh and keep your expenses and finances in check to build a better future.