How Does Foreclosure Work?

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The law requires foreclosure proceedings when a lender loans money and payments aren't made, resulting in collateral being sold to pay off the debt. Discover how foreclosure provides an opportunity for the borrower to be heard in court with help from a civil mediator in this free video on foreclosure law.

Part of the Video Series: Foreclosure Help
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Video Transcript

You have recently gotten behind on the payments of your mortgage to the lender and you've been hearing from neighbors and the news all about foreclosures are on the rise, foreclosures are at an all time high, the government is trying to assist people, what is all this foreclosure stuff about? Hello, I'm Robert Todd and I'm here to answer the question, how does foreclosure work? Well basically in past times when a lender loaned you money and you put up your house as collateral when you didn't make the payments, the mortgage provided that the lender simple take possession of your house and sell it and try to make enough proceeds to pay off the debt. When that didn't work, they came after you for the deficiency judgment. Now the law requires that a foreclosure proceeding be had. That means that the lender has to actually institute suit against you, you have an opportunity to be heard in the court and this allows you some times in which to file an answer and to try to make things right meaning catch up on your mortgage payments, come up with the sum that would be necessary to pay for the attorney's fees and costs incurred to that point and in other words, redeem yourself. I'm Robert Todd, and thank you for watching.


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