Financially, it is a tough time period for many, and the burden of a foreclosure makes it even worse.
What is a Foreclosure?
When an individual borrows money from another individual or financial institution, when buying a property, both the parties decide upon a certain amount of mortgage. The mortgage is a means of paying for the borrowed money over an extended period of time. However, when a borrower is unable to pay his lender the mortgage, any and every right to the property is lost and the lender puts the property on a foreclosure auction.
A foreclosure is the attempt of gaining back the money that a borrower fails to pay back. Therefore, when a borrower puts a halt at making mortgage payments, the lender has the right to forcefully sale off the asset involved in the money, i.e., the house. This forceful selling of the house is known as a foreclosure. A foreclosure is undertaken by the lender once they obtain a court order.
When a borrower misses their mortgage payments, they know they will face the dreadful foreclosure. Missing the payments can occur due to several reasons. Several times payment is not made due to financial hardships and at other times the payment is not made on purpose (as the property goes underwater).
After about six months of not making payments, the lender sends a notice to the borrower. The notice informs the borrower of the situation and the future problems that can occur if payments are not made. The notice also points out the fact of losing all the rights over the house.
After receiving the notice, the pre foreclosure clock begins to tick. During this time period, the borrower can engage in a short sale and make payments to the lender.
A short sale is considered to be a healthy alternative for both the lender and the borrower.
If however, the borrower does not opt for a short sale, the lender can take a legal action after obtaining a court order. Once the court order is obtained, every right of the borrower is terminated. The equitable right of redemption, under which borrower has a chance of redeeming himself and making payments for the debts, is also taken away with a foreclosure. Hence, there exists no way for the borrower to save themselves from going shelter less.
What is a Short Sale?
A short sale is a remedy for a foreclosure. Here the lender allows and gives permission to a borrower to sell off the property at a lower price. Even though the property is sold off at a lower price, the lender receives his money that would otherwise be difficult to get if the property goes under foreclosure.
Who to Contact for a Foreclosure?
Jim McCormack has a history of handling foreclosure cases and it is wise to approach an individual who has experience in this field. He handled the case of 7359 Autumn Crossing Way in Tennessee. The dwellers of 7359 had the Regions Bank as their second loan servicer. With Jim’s hard work, the property was sold in a period of 52 days for $190,000 and both the lender and the borrower were released from the mortgage loan.
Call this REALTOR today and save yourself from a foreclosure.