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When a property goes through foreclosure can borrower do a deed in lieu prior to the end date of the redemption period?
Eliot19
When a Property goes into Foreclosure and a Sheriff sale date is posted, or if after the Sheriff sale and is during the redemption period a "Deed in Lieu" is always a possibility. The Mortgage lender must agree to accept this. A"Deed in lieu" is the process in which an owner would be surrendering the title to the lender. Again the Mortgage/lender must agree to this act.
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∙ 16y ago
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How do you answer a foreclosure complaint?
State's establish laws concerning foreclosure action. Not knowing the state or the exact nature of the foreclosure document ( "Right To Cure" letter, forclosure notice, etc.), it is not possible to give a specific answer. If it is a letter of demand, the only response to such is for the borrower to adhere to the terms stated in the letter. A notice of foreclosure generally outlines the time in which the borrower has before the property is sold, whether the borrower has redemption rights, and so forth. Some states allow self-help foreclosures as outlined in the lending contract, some only allow foreclosure through judicial procedure, some allow either depending upon the individual circumstances. The only other option is to contact the lender and try to resolve the problem.
What does barred by foreclosure mean?
When a foreclosure is conducted according to law, the debtor's right of redemption is forever barred by the foreclosure. That means the debtor has lost the title to the property and the lender is the new owner. That phrase is also used when a municipality takes possession of a property for non-payment of real estate taxes through a judicial process. The final court decree in a tax title case forever bars the delinquent owner's right of redemption by reason of the tax foreclosure.
What is the meaning of the term forecolsure?
Foreclosure means legal process by which a lender cancels (forecloses) a borrower's right of redemption of the mortgaged property through a court order (called foreclosure order).The court sets a date up to which the borrower can redeem the property by paying off the entire loan balance (including foreclosing expenses).Thereafter, the lender is free to sell the property and, upon the sale, applies the sale proceeds first to the due amount and pays the remainder (if any) to the borrower.The borrower remains liable for the due amount if the property remains unsold, and for the shortfall if the sale proceeds are insufficient to pay off the entire debt.The lender is generally under an obligation to sell the property at or near its fair market value (FMV).Refer to link below for more information.
What are the foreclosure laws in New Jersey?
At least 30 days before starting the foreclosure process, the lender mails a letter to the borrower warning of the impending foreclosure. During this pre-foreclosure period, the borrower can prevent the foreclosure by paying off the amount in default. The lender initiates the foreclosure through the courts and records a lis pendens (notice of pending lawsuit) with the county clerk. The lender can sue for either the default payments or the entire unpaid principal balance on the loan. The borrower is notified of the foreclosure action in person or by publication if necessary. After being notified, the borrower has at least 35 days to respond or the court will make a ruling. If the court rules against the borrower, a sale date will be scheduled. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
If going through foreclosure do property taxes have to be paid?
Yes. The taxes on owed on the property, no matter who owns the property.
How does foreclosure work?
Foreclosure occurs when a person is unable to make payments on a property. The bank, which owns the rights to your property, can choose to overtake the property and kick you out.
Is Florida a judicial or non judicial state for foreclosures?
Florida is a judicial state for foreclosures. This means that lenders must go through the court system to foreclose on a property in Florida. This process typically involves filing a lawsuit against the borrower.
Bank Foreclosure: a Homeowner's Overview?
Since the U.S housing market bubble collapsed in 2008, bank foreclosure has become a reality for millions of homeowners. People who understand foreclosure rules have the best chance of keeping their property or minimizing their personal losses if the foreclosures go forward.What Is Bank Foreclosure?Every mortgage spells out the lender's remedies if the mortgage holder fails to make timely payments or properly maintain and insure a property. A bank choosing foreclosure to protect its loan investment takes physical possession and legal ownership of the home. It can then attempt to sell the real estate for enough money to cover the remaining balance on the loan.What Triggers the Bank Foreclosure Process?Foreclosure typically follows a borrower's sustained failure to meet the mortgage terms. Missing between three and six months of payments, dropping insurance or damaging the property enough to significantly reduce its value can trigger foreclosure. Each state has a specific legal process allowing the bank to transfer the home's title back to itself.Costs of Bank ForeclosureA bank assumes legal, postage and advertising fees for each property it places in foreclosure. More fees accrue if the home actually goes to auction. Borrowers have the right to correct the mortgage situation throughout the foreclosure process, but they must also pay the bank's foreclosure fees. The best scenario for a borrower is to avoid foreclosure if at all possible.Avoiding ForeclosureMeeting mortgage payments on time and properly maintaining and insuring a home is sometimes impossible, especially following a job loss or medical emergency. In these instances, it is best to notify the bank immediately and negotiate a temporary change in mortgage terms. This change can lower the monthly payments to a manageable level until the borrower's financial situation improves.It may also leave money necessary repairs and insurance premiums. If the bank refuses to negotiate, the borrower can attempt to refinance through another lender or sell the home and pay off the loan. Bank foreclosure seriously damages a credit history and makes it difficult for a borrower to obtain future mortgages.
Foreclosure?
Many Americans are facing foreclosure today due to the declining economy. Foreclosure is when a mortgage company terminates the borrowers right to the mortgaged estate. The foreclosure process begins when the borrower fails to make the mortgage payments at the specified time the loan is due. Often this occurs because of divorce, unemployment, medical issues, death, and even being sick of property management.The foreclosure process begins usually with the demand of payment sent out in the form of a written letter. This written letter is known as the Notice Of Default. The process doesn't typically start until the borrower is three months before on the mortgage. This notice is considered to be a threat to sell the borrowers property and evict them from the premises if payment arrangements are not made. If payment arrangements are not made or agreed upon between the borrower and the mortgage company, then the foreclosure process will preside.Foreclosure laws differ from state to state. In some states the borrower could remain within the dwellings for up to a year. In other states the borrower has less than four months to vacant the premises. During the prefilling phase of foreclosure, the mortgage company may still offer options to the borrower so that they can keep their customer and the borrower can keep the property. Some of the options offered is loan modification, refinancing, and forbearance. Forbearance is the agreement to suspend or reduce monthly payments over a period of time. Terms and conditions of the loan do not change and forbearance only last for a year. After that year is over, the borrower must cure the delinquency through a lump sum reinstatement or repayment plan.Foreclosure TimelineBelow is a foreclosure time line showing the complete foreclosure process from start to finish. This gives an individual an idea of what the process is and what happens at various points within the process.Day 1-15Mortgage payments are due generally at the first of the month. If payment is not received by the due date of the loan then the account is seen as delinquent.Day 16-30By this time a late fee is added on the account because payment has not be received. The borrower will get phone calls from the lender and also a late payment notice from the lender.Day 31-45By the 30th day, the loan enters into default. A second notice is then sent to the borrower. The lender then reports to the credit bureau which will have a negative impact on the borrowers credit history.Day 46-90Lender sends letter to the borrower stating a breach in contract and violation of the loan terms. By day 60, the lender may start up the accelerated procedure notifying the borrower that foreclosure is in process. By this time the lender can refuse any partial payments toward the delinquent accounts.Day 91-415Loan is sent to foreclosure office within the lenders establishment. There they hire an attorney, to start the proceedings. Foreclosure can start anytime after the acceleration notice has been sent. This occurs when the loan has reached 90 days past due. House is then sold at an auction.
What happens if you default on a loan used to purchase a lot?
If you default on a loan used to purchase a piece of property you usually lose the property through foreclosure.
Is repossession a form of dissipating or disposing of marital property?
No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.
If I try a short sale and it doesn't sell before foreclosure can I give the deed to the bank and avoid the foreclosure?
AnswerYou can't just give them the deed, no. All you can do is offer it to them and ask them to accept it instead of taking the property all the way through the foreclosure process.The bank doesn't have to accept the deed in lieu of foreclosure, as it's commonly referred to. But they will want to have seen that you have tried to sell the house for a period of time before they will even consider accepting a deed in lieu.If you have run out of all other options, the bank will be more willing to consider taking the property back. So the fact that you're attempting a short sale is good. Don't wait until the last minute before the sheriff sale to offer the deed in lieu, as well, because it will be more cost-effective at that point for the bank just to carry on with the foreclosure and sell the house.But, if the short sale doesn't work, contact the bank and offer the deed in lieu of foreclosure. They'll have more paperwork and procedures for you to do, but it will help you get out of foreclosure a little sooner and won't be as bad on your credit.Lets look at this a bit from the lender's side. It will help to understand some of their issues so you can negotiate a better short sale.Do understand that negotiating a short sale can be difficult and pretty stressful as the lenders are overwhelmed with loans to sort out. How you submit the information, what you say and how you focus their attention on the defects and other things going on matters a great deal.One reason a lender may decline to take the property back without a full foreclosure process can be the junior liens. Many times people in default on one loan are also in default on other loans, have back taxes (property or personal), liens from other creditors and similar. If the lender completes the foreclosure then the junior liens will no long remain on the property though the borrower will still owe the money in most cases.Other things to consider. When a lender accepts the deed in lieu on a property they are missing out on the opportunity to see if the property would sell at auction. A deed in lieu is used to quickly move the process along so that the borrower hands over the property in reasonable condition plus waives their rights of redemption. Redemption can be pretty long in some US states. A short sale is better as the lender settles and there is no need to market the property as an REO like there would be with a deed in lieu.
