How does the lender enforce his loan?
– When you bought the house, you took out the loan through a “promissory note” and you also gave the house as collateral to the lender through a “deed of trust.” You also promised to make regular payments and if you failed to do so, you gave the lender the right to sell the house to pay the loan through an auction sale process known as “foreclosure.” Sale of the house through foreclosure is an eventuality if you fail to make payments on the loan.
Related Questions
- Does a mortgage broker or lender need to be a FHA approved lender to originate a single family loan that is subsequently insured by FHA?
- Does a foreclosure action in a court of equity substantially affect a lender’s right to enforce loan obligations against a borrower?
- Whats the difference between a supervised and nonsupervised lender (both mortgagee and loan correspondent)?
