What Is The Foreclosure Process?

Posted By : alex , on Oct, 2014

 

Unless you are one of the fortunate ones who can purchase your home with cash you will have bought it using a home loan, when a lender provides this loan he has effectively taken a security interest in the property. As the lender it is your responsibility to maintain the agreed upon monthly mortgage payments, if you cannot the fact that the lender has a security interest gives him the right to proceed with a foreclosure in Lake Worth. When the lender does foreclose it gives him the right to sell the property at auction and apply the auction proceeds to the outstanding balance of the mortgage thereby recovering the initial investment.

In the event the house does not sell or the price the lender received is not enough to cover the outstanding loan amount then a deficiency judgment might be pursued. Both a foreclosure and a deficiency judgment will have a significant detrimental impact on your future prospects to purchase another property. Anyone with any sort of financial problems is justifiably worried about the prospects of a foreclosure but there are certain steps that can be taken to avoid it.

Before anything else decide one way or the other whether it will help your financial situation to simply let the foreclosure in Lake Worth go ahead. If you know that the problems that you are facing are short term, perhaps they are the result of losing your job suddenly, then it may only be a temporary situation and you will soon return to financial viability. On the other hand, your financial problems and your total debt may be so great that foreclosure of your home will be one of the best ways to erase them.

If you decide to try keeping the property you can approach debt counselors that can review your situation and offer advice and help. These people can negotiate with the lender on your behalf; perhaps they can arrange a lower rate of interest or lower monthly payments.

You may wish to personally approach your lender. It must be understood that lenders make their money from the interest their clients pay on outstanding loans, a lender does not want to be burdened with a property; it is not in their best interest to pursue a foreclosure in Lake Worth. In many cases a lender will be quite sympathetic and will willingly work with you to find a solution.

If you cannot find any solutions that will work you may be better off selling your house rather than face the long term ramifications of having had it foreclosed upon.

If you are being threatened with foreclosure in Lake Worth there are a number of tactics that can be employed by a foreclosure attorney. You are invited to discuss your situation with the Law Offices of Sean I. Koplow.

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