The Process Of Foreclosure- A Sneak Peek
Foreclosure is the legal process where the lender tries to recover the balance amount of a loan from the borrower who has not been making payments to the lender since some time. The recovery is done by forcing the sale of collateral kept for the loan. The foreclosure process is in fact not difficult to understand. With proper knowledge, you can know how to stop a foreclosure or what steps to take when facing foreclosure.
How to stop the foreclosure?
There are indeed various phases during which the borrower has the chance to bring loan current and stop the foreclosure process. Many people hold the opinion that as soon as one receives the foreclosure notice, they have lost their asset. But this is not the real truth. The foreclosure notice serves to be the very first step in the foreclosure process that may take several weeks or even months to get settled. Through understanding the process of foreclosure, you can gain more control over its results.
The process of foreclosure
If you fail to pay later than 30 days or so, the bank will send you the Notice Of Default. This is the NOD that tells you to pay or else the bank will foreclose your collateral or asset used to take the loan. The NOD includes property details, name of the borrower, amount that you need to pay, number of days you have not paid as well as a statement that indicates that you are in defaulter list.
So, when you do not respond to the bank in a way that it satisfies them, they send you the NOD. The notice informs you that bank has started the foreclosure process and has even scheduled the sale of the asset at the auction. It even includes percentage interest and contact details for bank’s attorneys along with other information mentioned above.
Ways to stop/avoid foreclosure
When you are facing foreclosure, there are many ways through which you can stop the process. One of them is loan modification. This option can be thought of when the borrower or defaulter faces problem in making proper and regular mortgage payment as a consequence of long term financial distress. Reducing the above-market interest rate to the market rate or/and by extending main terms of note can enable the homeowner to continue making the payments. Permanent reductions in interest rate appeal a lot to the borrowers but even some temporary reductions to 1 to 3 years can offer great help.
The most important thing to remember is that there are still some options to consider, you need to act swiftly to know how to stop a foreclosure. Also, you need to make sure that you do not rule out the option of taking foreclosure assistance from a reputed foreclosure defense attorney.
Without any doubt, one of the difficult legal problems that one can have is the misfortune of facing foreclosure process. Not only is it a grueling and long process, it is complex as well and can only be handled by an experienced, reputed and competent foreclosure defense attorney.
Hire professional services
Choosing the best foreclosure defense attorney with much experience and knowledge about the foreclosure process will ensure that you will be guided properly through the whole procedure. The responsibility of the attorney is to actually represent the best interests of his or her client. Some part of this process involves a kind of negotiation on the client’s behalf to reach the settlement point which benefits and favours the client. Only an expert defense attorney can assist the client responsibly through the whole process of foreclosure and work in best interest of the client.
So, if you are looking forward to know how to stop a foreclosure, better consult an attorney and then face the process of foreclosure without any fear.