Fighting foreclosure in the last two years is the number one issue for many homeowners. Homeowners are losing their homes in record numbers. Therefore, how can homeowners survive foreclosure? What are the foreclosure time line and the reasons for foreclosure?
Foreclosure is a legal solution to a contract breach by the homeowner. To cure the problem both parties (bank and the homeowner) must decided upon a solution. If there is no agreement reached between the homeowner and their lender then the lender is forced to act on their own with foreclosure being the end result.
There are regulations in place in each state to protect the homeowner by requiring your lender to prove that they have tried to work with you the homeowner. This can come in the form of loan programs such as a r loan modification and forbearance. Disclosures in the form of written notices will be mailed to you the homeowner regarding a possible foreclosure. .
I many cases your lender will use a loan servicer to to process the foreclosure. This could be a benefit as well a problem. The servicer really could stand in the way of the homeowner getting the best deal from their lender. So if you find yourself in this position you must be careful when negotiating with your Loan Servicer. The servicers are the ones who move the file to the attorney. Recently home owners have challenged these law suit under the legal question, has to whom really own their mortgages. What the courts have found is that the lender could be on the mortgage note but it is servicer who brings the law suit against them. In fact in many situations who owns the mortgage is very difficult to establish.
Words of the day:
HARP
HAMP
Home affordable mortgage modification programe
Freddie Mac foreclosure
Fannie Mae foreclosure
