Posts Tagged ‘notice of default’
The Faces Of Foreclosures Include Mine
Every time we drive to work, school, or church we pass the empty homes. These are the houses our friends lived in and now they were largely unkempt and vacant. The stories behind each of the foreclosures was different but the anguish at saying goodbye was identical.
A medical emergency, divorce, or job loss might trigger the process. I received my Notice of Default the day I was holding my garage sale. Looking past the treadmill, books, and my lose weight fast program I was struck with reality. I sunk into a chair by my wife’s electric breast pump and stared at her strapless wedding gown.
The thought of losing our house was simply not in the cards. I am typical male that does not really listen. I just want to solve the problem. I had no experience in losing a home or more importantly how to avoid losing a home to the bank.
I got proactive. I determined who had my mortgage and contacted them to see what options I had available. Mortgages are bundled together and sold and often resold. You mortgage may now be with a company thousands of miles from the downtown bank that financed your house. FHA loans, Fannie Mae and Freddie Mac loans all have free counselors with toll free numbers.
VA and HUD also have free counselors to determine if you qualify for loan modification programs. You may also fit a special needs category that entitles you to modified loan. Work quickly and do not waste any business days. The clock is ticking on your foreclosure.
Check out your state’s foreclosure rules. Ask about your redemption rights. No matter who you speak to or how informed they may be, make sure your speak to an experienced real estate attorney to confirm everything. You must know how many days you have to catch up on your back payments. You need to know if your auction date can be extended.
The process may vary from state to state. You need to check to determine if you have a one year right of redemption. The time period may be different and it may not apply to your state. Redemption rights should be established.
What if you cannot bail yourself out or find a solution in partnership with your lender? Your home will be scheduled for auction. Do not wait until you are standing in the middle of your garage sale holding your default notice to find a solution. Start the minute you even think you may not be able to make your monthly mortgage payment.
Knowing Trust Deed Foreclosure
Trust Deed foreclosure is not the same as the mortgage foreclosure as there are no proceedings of the court involved. Basically, majority of investors considered trust deed foreclosure to be a third party action.
Investors typically use different terms when it comes to trust deed foreclosure. A borrower is called as the trustor,the lenders is called as the beneficiary and the third party representative is called as the trustee. The neutral third party also known as the trustees is designated for a purpose of taking care of the property title as a guarantee for the debt.
Notice of Default
Since there in no involved court proceedings, the trustee now has the right to sell the estate on behalf of the beneficiary in the occasion the trustor is not able to settle his mortgage payments every month. Like other trust deed foreclosure, the trustee will send a Notice of Default to the trustor and files it. In general, the borrower is given a grace period of 90 days to pay for the mortgage payments as well as the penalties. So, foreclosure sales buyers in the mortgage state must know that it will not be possible for them to get a clear title of the foreclosed property as the former owner of the property has the chance to resolve all the mortgage payments and take the property back. However if the given duration has ended don’t anymore expect them to be Mr. Kind Guy. They would place a notice of sale in front of your property, advertised it in a broadsheet to lure the largest investor and once the 3-week publication is over; the property will be placed on auction in the process of the courthouse. The bidder who will give the highest bid will obviously walk off along with your property.
Certainly,a lot of lenders choose the trust deed foreclosure process because they hate to wait until six months to years before they can begin the process of foreclosure. Time is vital for them. They don’t want to waste a single time as they believe it can also cause them to lose money.