 HOME |
ABOUT |
MORTGAGE BLOG |
RESOURCES |
SITEMAP |
APPLY FOR LOAN |
CONTACT |
| > BAD CREDIT LOANS | > HARD MONEY LOANS | > BAD CREDIT MORTGAGES | > CALIFORNIA BAD CREDIT LENDERS |
:: Bad Credit Article: Understanding Foreclosure and How You Can Combat It |
|
| What it is : A foreclosure is the repossession by a third party of an owner’s property -Usually a collection of a debt owed by the owner.
Why it happens : There are many circumstances in which a foreclosure may occur. -Negligent mortgage payments – the mortgage broker and holders confer with the property owner and the trustee, who is usually a lawyer. -If the property happens to be insured, the company may offer assistance and/or present the owner with alternatives. -The property is appraised to determine its market value. What is done with property that has been foreclosed : In most cases, the property is resold at a significantly lower price, especially if the property is simply based on the taxes, interest, and other penalties owed. -The property owner does have the right to pay off his debts up to the point of the sale. He must prepare a pay-off statement, along with the negligent payments, lawyer fees (which usually averages out to 5% of the remaining balance of the original loan), and numerous other fees issued by the mortgage company. -The owner must confront both the payments due and also the legitimacy of the charges issued against him, as the company may attempt to charge him with false fees. -The trustee, or lawyer, usually challenges the allegedly false fees. |