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Ultimate Guide to Home Foreclosure

Ultimate Guide to Home Foreclosure | J Daniels & Associates

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If you’re looking for an ultimate guide to home foreclosure, look no further. We have everything you’ll need to know about foreclosure in one handy place. You won’t need to go searching for answers or spend hours looking for information. J Daniels and Associates has everything you’ll need to know right here. Read on below if you’re looking to learn about home foreclosure.

What is foreclosure?

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.

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.

How long can you not pay your mortgage before foreclosure?

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Generally, every lender has different criteria when it comes to how long you can avoid paying your mortgage before they will start the foreclosure process. Your lender may have a different timeline when it comes to mortgage repayments and how long they will wait before taking any steps.

How does foreclosure work?

If you’re about to go through the foreclosure process, you might be wondering how your lender will go about foreclosing on your home. In most cases, the stages of foreclosure may involve sending a default notice, sending a summons, and then getting a court order.

Sending a default notice means that you usually will have a notice sent explaining that you have at least 30 days to pay back your missed repayments, plus the regular repayment on your loan.

In the case of a summons, your lender may serve you with a Statement of Claim or a summons or writ. If you receive any of these, you may be given a certain number of days to either file a defence or go to court. If you don’t respond to this notice, your lender may then begin legal action to foreclose on your home.

Finally, if your lender is granted a court order to repossess your home, you may receive a Notice to Vacate. In some cases, foreclosed properties are either sold at an auction, or sold directly by the lender.

What happens when a house is foreclosed by the bank?

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Once you have been sent a default notice and then sent a summons, the next step in the foreclosure process is being served with a notice to vacate or an eviction notice. 

Generally, you will usually have two weeks to leave your home once the eviction notice has been served. You will not be able to access your home once you have vacated, as the locks will usually have been changed by your lender. If you happen to need access once you have vacated, your lender may need to let you in as you will not have access on your own.

In most cases, a lender will hold on to a foreclosed property until a time when it is sold, and they can recoup any outstanding funds. This could take anywhere from a few months to much longer.

Can I stop a foreclosure by paying the past due amount?

It may be possible for you fully back pay any owing amounts of outstanding debt and stop the foreclosure process from happening, depending on where you are at in the stages of foreclosure.

Generally, you can repay the total amount of repayments owing in one go instead of making instalments over a period of weeks or months, which may help halt the foreclosure process.

Depending on your lender, you may find that you have fees for any overdue repayments. Some lenders will have late fees, where some may not. However, is usually possible to stop the foreclosure process once it has begun.

Can I sell my house when it has been repossessed?

Generally, it is not possible for you to sell your home has been repossessed. Once your lender has possession of your house, you lose both any access, and any authority that you might have had previously. While it is not possible for you to sell your home once the foreclosure process has begun, the foreclosure itself may still be reversible.

Can I repurchase my home later?

Once the foreclosure process is completed, you might be wondering if it’s possible to purchase your home back. Since foreclosure is the process of selling your home to cover debts, it may be unlikely that you would be in a position to have extra funding to buy back your house once your lender has put it on the market. However, if you can get approved for another mortgage at a later date once your debts have been repaid, it may be possible for you to repurchase your house at a later date.

Will I still owe the bank money after foreclosure?

In some cases, foreclosed properties are either sold directly by the lender or at auction. Generally speaking, if your lender forecloses your home they may not be able to chase you for any shortfall. If the sale of the home is enough to cover the remaining costs of your mortgage, in some cases, other homes or items will not need to be repossessed.

Generally, it’s only too late to stop foreclosure once your lender has sold your property. J Daniels & Associates can discuss your options with your lender on your behalf, and explore other avenues for assistance.

How can J Daniels & Associates help me?

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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