Welcome to Foreclosure Guide
Foreclosure Mitigation Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Definition of Foreclosure on Default of Payment of Property Loans
from:Foreclosure is a legal term often on the minds of many American homeowners. The average American family works hard to afford a home in which their family can live comfortably. Most families do not have the cash up front to pay for their dream house in full. They will seek a loan from a financial lending institution such as a bank or a mortgage company to buy this home.
To secure the loan, these financial lending institutions must be certain that they will get back their money back. Since a good paying job does not guarantee that a loan of this magnitude will be paid back, they require what is known as collateral, an asset they can seize in lieu of payments if the loan is in default (no longer being paid back).
Normally the home that is being purchased with the loan is put up as collateral and if the mortgagor (person seeking the loan) does not pay back the loan to the mortgagee (money lender, borrower), the house goes into foreclosure. The money lending institution may obtain a court order to proceed with the foreclosure and repossess or seize the house in lieu of repayment of the loan.
In some instances the financial lending institution may attempt foreclosure on a home or other property, but if the borrower repays the loan, a court of equity may rule in favor of the borrower who at that point will be able to keep the home or property in question.
The contract between the financial lending company and the borrower is called a mortgage or deed of trust. When a contract has been entered, effectively the lending company has agreed to give the borrower a certain sum of money in which to purchase the said property. The borrower agrees to pay this money back (signs a promissory note). The contract will also stipulate that a lien will be placed on the property meaning that the financial lending company has a right to seize the property (repossess it) if the loan is not repaid in the time frame that is stipulated and according to the conditions set out in the contract.
The process of foreclosure is used in any contract whereby real estate, homes, farms, land, and other immovable property has been obtained through a mortgage, and the mortgage holder has defaulted on the payments.
Judicial Foreclosure is available in all the American states. When the borrower defaults on the loan, the property is sold. The proceeds from the sale of the property first goes to repay the balance on the existing loan, then to any other lien holders, and finally to the borrower if any proceeds are left over. All transactions are done legally through the court system.
Foreclosure by power of sale is sometimes added as a clause in the mortgage contract that defines the foreclosure procedure without court intervention. This procedure follows the same order as the Judicial Foreclosure however faster since the courts are not involved.
Foreclosure Mitigation News
The great foreclosure deception; big banks renege on Obama deal - Examiner.com
The great foreclosure deception; big banks renege on Obama deal Examiner.com NHS offers one-on-one foreclosure mitigation counseling and group education courses and services. There is no charge for their services and they can point qualifying homeowners to other state and federal agencies where they can find assistance. |
Foreclosures Fall...And That's a Bad Thing? - CNBC.com
Foreclosures Fall...And That's a Bad Thing? CNBC.com Bank of America Government and private sector programs are both trying to mitigate the foreclosure crisis, but as the rental market shows no sign of cooling off, investors are increasingly arguing that these troubled mortgages should be allowed to run ... |
'Obama's Promise,' Part II - FactCheck.org
'Obama's Promise,' Part II FactCheck.org Claims the president broke a promise to help homeowners facing foreclosure, when in fact 5.9 million have received assistance. Gives a somewhat darker picture of the mortgage foreclosure situation than the facts warrant. Exaggerates the number of ... |
Petraeus, Harris address woes of military homeowners - abc7news.com
 abc7news.com | Petraeus, Harris address woes of military homeowners abc7news.com (KGO) -- California's attorney general and the wife of a famous general met with service members at Travis Air Force Base Friday to talk about the financial difficulties so many of them are facing, especially in light of the foreclosure crisis. |
Mortgage Mitigation Flexibility From CMG MI - Credit Union Times
Mortgage Mitigation Flexibility From CMG MI Credit Union Times The new program is called the Foreclosure Prevention Advance, and it will allow a credit union to use some money that it might receive from a mortgage insurance claim following a foreclosure to help delinquent homeowners catch up on their mortgage ... |