What are basic pre-foreclosure considerations for lenders and foreclosure practitioners when a foreclosure action is eminent?
In order to properly prepare for a foreclosure action, it is important for lenders and practitioners to be on the same page in regards to title, debt and documentation. Preliminarily, the appraisal should be reviewed to confirm that the value of the property over and above any superior liens or assessments, is sufficient to cover the costs of litigation, the costs of marketing and sale following foreclosure and the expenses of carrying the property throughout that period. Throughout this process, lenders should take steps to make sure the property is physically protected through inspection and security and financially protected through adequate insurance. Lenders and lawyers alike should obtain and review the promissory note, mortgage, security agreements, UCC filings, personal guaranties, payment history, title insurance policy, closing statement , credit file (correspondence and internal memoranda describing negotiations and credit history) and any other documents or correspondence r
