Comprehending the Foreclosure Process
When you fail to pay for a specific product purchased on credit, the lender has a right to take legal action against you. The lender is permitted by the law to regain the possession of the property because if the payment is not being made on time, then it means that the lender is suffering. When the lender decides to foreclose the property, it becomes a hard or difficult for the defaulter to make up the loss and the embarrassment caused as a result. The only solution you can turn to is when you own some other properties somewhere because you can always turn to them to generate the needed sum. Here are the various things to understand and take note of when going through the foreclosure process.
The lender of the property can decide to apply the following the types of reactions against the defaulter in mortgage payment. You can find yourself in a pre-foreclosure where the lender can begin to foreclose on you without even issuing you a notice before the legal action. You just wake up one day and find your property is being recaptured by the original owner because you have defaulted a lot and for this reason you have caused losses to the individual consequently. You can control the recovery process of your property by ensuring that put it on sale as quick as possible to raise the money needed to cater for the balance with the lender.
Normally, it takes the lender about three months to declare the foreclosure process active on your property after they realize that you have defaulted the payment enough. However, at this stage, the lender issues you a notice to inform you that the property will be recalled because you have not met the payment in time and therefore you are contributing to losses in the process. The notice is good because it helps you to organize yourself and make the possible arrangements to get the finances needed to curtail the entire process and avoid this level of embarrassment.
Defaulting the mortgage payment does not happen on purpose, but some hurdles may contribute these failures as a result. May be you might be employed, and then you happen to lose your job, this might contribute to a default in the payment process leading to the foreclosure in the future on an outstanding loan. The property might also get damaged meaning that the constant supply of the money to the lender will be stopped as a result.
You can fail to pay the mortgage for just one month, and nothing will happen if you pay in the following month. As from the third month of payment default, you will receive stern notice from the lender, and you need to worry about this.