Foreclosure Recovery Law
Failure to make mortgage payments can lead from a simple delinquent account to a serious foreclosure process in which the home or business owner can lose his property. Foreclosure recovery laws that regulate the foreclosure process vary from state to state. Should you find yourself facing a foreclosure situation, seek a foreclosure attorney. These laws are complex and they can even change with each new legislative session.
Other People Are Reading
-
The Process
-
When you are delinquent with a mortgage payment, the lender will typically contact you. If you do not bring payments current, the lender's collection department can exercise a clause in your mortgage contract that requires the entire balance of the loan to be due. Failure to satisfy this debt results in starting a foreclosure process. Legal actions will be launched, and a final notice will be sent to you by certified mail. A tentative date will be set for an auction on the property.
Foreclosure Recovery
-
The first step in recovering from a delinquent account is to contact the lender immediately, or preferably even before you know you are going to miss a payment. Mortgage lenders typically lose money on foreclosed properties, so they prefer to avoid foreclosure if possible. Explore all possible ways with your lender to recover from the delinquent account. Respond promptly to all correspondence from your lender. Consider catching up delinquent payments by raising money from the sale of stock, cashing in investment securities such as certificates of deposit, selling assets such as jewelry or taking a personal loan. You may be able to work out a refinancing agreement with your lender.
-
Warning
-
Sadly, there is always someone ready to take advantage of another person's misfortune, and foreclosure recovery scams are prevalent, warns the U.S. Federal Trade Commission. The commission advises steering clear of companies that use advertising words such as "97% success rate" and "guarantee," and any company whose ads give the false impression that it is a nonprofit company or is in some way affiliated with the government. These are red flags for fraud. Become knowledgeable about the foreclosure recovery laws in your state and then acquire the services of a lawyer who handles foreclosure situations in your state.
-
References
- Photo Credit house image by hans slegers from Fotolia.com
