Foreclosure for many homeowners is a threatening, harrowing experience they seek to avoid. If a homeowner fails to make mortgage payments, foreclosure will most likely occur. Foreclosure is the beginning of the initiation of legal proceedings by a lender to take back the property used to secure the loan. The property is usually the parties’ home. At the end of a foreclosure proceeding, if the family is still in their home, the purchaser of the property can bring an eviction proceeding in the landlord tenant court to have the family removed from their home.
Should the home be sold at a foreclosure sale for less than the amount of the mortgage, interest, late fees, and other penalties, the financial institution who held the mortgage can move forward to obtain a deficiency judgment against the mortgagors for the amount that is still owed to them after they receive the proceeds of the foreclosure sale.
What is the best way of dealing with foreclosure? Avoid it!
Falling Behind on Your Mortgage
If you are falling behind on your mortgage, you should contact your bank. You should ask your bank whether they have any programs that will be helpful to you in dealing with temporary financial setbacks. Most lenders have a variety of programs available to homeowners suffering from short term financial difficulties.
If you receive letters from your financial institution or threats of foreclosure by attorneys for the financial institution, you should carefully read these letters. Ignoring these notices is not a good idea. Respond to the correspondence either on your own or retain an experienced foreclosure lawyer to help you deal with the situation. There are a variety of rights homeowners have with regard to mortgages and foreclosures. An experienced foreclosure defense lawyer will be able to explain these rights to you. In addition, the attorney will be able to discuss with you defenses that can be raised in the event of a foreclosure lawsuit against you.
If you have financial problems you could discuss the possibility of a bankruptcy. Credit cards and other non-secured creditors should not be paid before you make mortgage payments. Your home provides security for you and your family. It should be one of the first bills to be paid by you.
