Foreclosure is not difficult to understand, the process is a legal mechanism that allows a creditor to legally gain control of a home or other mortgaged property from the borrower who has failed to honor the terms of the loan agreement. Different states have different rules when it comes to how many payments must be missed before foreclosure proceedings can commence. Once the property has been successfully foreclosed all rights to the property return to the lender and the borrower, the homeowner, looses all his or her rights.
Under normal circumstances when a borrower fails to make a mortgage payment on time the lender will penalize the borrower by assessing a late fee and notify the credit bureaus of the situation. Foreclosure in Wellington FL can be an expensive process so most lenders try to work with mortgagees who have fallen behind in their agreed payments. The lender will attempt to collect the unpaid debt by sending demand letters and perhaps turning it over to a collection agent. If the borrower cannot or will not bring the loan payments up to date then the lender can opt for foreclosure or allow the current mortgagee to arrange for a short sale.
Short sales, often called pre-foreclosure sales involve people who cannot sell their home because the market value is below the outstanding balance of the loan and cannot arrange to make their mortgage payments. In cases such as this the lender will agree to let the borrower sell the home for an amount less than the outstanding loan balance. Before a short sale can be negotiated both parties; lender and borrower have to agree on a price which they will both accept. For those borrowers who are fortunate enough to negotiate a successful short sale they will avoid foreclosure in Wellington FL but if they cannot, the foreclosure proceedings will push through.
The holder of the debt will petition the court, asking that the home be foreclosed upon. The court reviews the evidence along with all the pertinent documents relating to the loan to ensure that the borrower has actually defaulted. Although the borrower can appeal the court’s ruling rarely will the court reverse its decision if the proof is evident. The deed transfer is recorded and the title to the property changes from the borrower to the lender. The procedure ends when the lien holder sells the property and uses the proceeds to settle the original borrower’s obligation.
If you are being threatened with foreclosure in Wellington FL you are advised to hire a foreclosure attorney as soon as possible. You are invited to contact the law offices of Sean I. Koplow.
