What is a Foreclosure?
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner’s failure to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that “the lender has foreclosed its mortgage or lien”. A Foreclosure by Sale begins with the posting of a sign advertising the auction of your home on the sale date. You can stop a foreclosure sale by filing a Chapter 13 bankruptcy by paying the full arrearage or arranging a workout agreement with your mortgage company. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. Chapter
Being behind in your mortgage payments or other bills can be a very stressful and trying time, no matter what reason the financial stress occurred. You could have gotten behind in your financial obligations to an illness in the family, an automobile accident that put the breadwinner in the hospital for a long period of time, a lay off from work, or even a death in the family. These things happen to everyone and can cause you to be under so much financial burden that you are in jeopardy of losing your home. You have probably heard the term foreclosure but you may not know exactly what the term means and more importantly how to stop it. First, a foreclosure happens when you are unable to keep your promise to pay your mortgage payments on time to the bank or lending company that has the lien on your home. This is usually the company that gave you the loan in order for you to purchase the home. They hold the lien on your home until you pay off the loan, then you receive the deed to the pro
Foreclosure is the legal process in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage or lien”.
