Real Estate: Understand Foreclosure

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Usually a lender will allow payments arrangement but the homeowner has to make attempts to pay them. A foreclosure could be a judicial one or a non-judicial one. A judicial foreclosure is when a lender would file a lawsuit in court to obtain the ownership to the house. A non-judicial foreclosure is when the lender had a deed contract and they can foreclose it on their own without going to court.

When a property is in judicial proceeding, the court will hold an auction for the property and pay the lender the amount that is sold to another party. The court will notify all parties involved once the lender files a lawsuit in court for foreclosure. A second type of foreclosure is by power of sale. This is when the mortgage company can repossess the property without court supervision. The mortgage balance will be determined by the clause of acceleration. Acceleration allows lender to put together the full debt that is due to them.

You can void foreclosure by making payments arrangement, filing bankruptcy, refinancing, sell your home, and alternative financing. When a deed was use the lender will take back the property on contract. They can also get legal ruling to evict the occupants. If it’s a judicial foreclosure then the county sheriff will hold an auction to sell the property. Nowadays, lenders have to prove in court that they are the party of interest in order to get a judicial foreclosure and this has prevented a lot of foreclosures because the lenders couldn’t prove themselves. You can fight a foreclosure by proving that the debt is not real. You can make payments arrangements to make foreclosures go away.

Source: www.wikipedia.org/foreclosure

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