If you’re in the midst of experiencing foreclosure, you might have questions about the process itself, and how it works. You might also be wondering what exactly your lender can foreclose. Generally, whichever property you are behind on with your mortgage repayments will become foreclosed. This will most likely be your home or property.
Read on below to find out what can be foreclosed on, and if other items or properties can be foreclosed on at the same time.
When you take out a home loan, your house is held by your lender as security. This means that your lender can repossess and sell the house if you fail to make repayments according to your loan contract. Foreclosure refers to the process when a lender takes possession of a property and sells after the homeowner fails to make their mortgage repayments.
Generally, if you fail to make your repayments, your lender will repossess your property to try and recover any money owing on the loan. Usually, foreclosed properties are either sold at an auction, or sold directly by the lender.
Generally, a lender cannot take action against you unless you have been provided with a default notice. In most cases, a default notice should include:
If you manage to repay the overdue amount within the set time, your loan may continue on as normal. If you do not pay the overdue amount within the set time, your lender could apply for a court order to take possession of your home, resulting in foreclosure.
A foreclosure sees the lender go through the legal process of transferring the title of the property from the borrower to the lender. In the case of a foreclosure, generally, the property affected is a home, since that is the property that you would have a mortgage on.
If the sale of the home is enough to cover the remaining costs of your mortgage, in most cases, other homes or items will not need to be repossessed. Speaking with your lender during the foreclosure process will give you more clarity on what they will need to repossess or foreclose, and a time frame for then this may happen.
J Daniels & Associates has more than 40 years’ experience and has helped 1,000’s of people successfully.
We advocate on our clients’ behalf with banks and creditors in order to stop home repossession, as well as helping to stop those in bankruptcy situations from being harassed by creditors. You shouldn’t have to live in constant fear, and that’s where we can help.
We aim to provide support services to those who do not know where to look, or who are confused about where to turn during the bankruptcy process. Our helpful advocates can assist you when you need it the most. We are able to give you confidential help, expert debt guidance and help you to find a personalised solution.
We don’t have any hidden fees, so you won’t have to worry about any nasty surprises. In addition to helping you to improve your financial situation, we can assist you in finding a solution to your mortgage issues. If you’re in need of help and support, give us a call today for your free consultation.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
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