If you’re a victim of foreclosure, you need to learn what foreclosure actions the lender has in store for you. The most common foreclosure actions are pre-foreclosures. Pre-foreclosures occur when the lender issues an executive order allowing the bank to take over your home in the event you do not make payments. Other types of pre-foreclosures will include bank owned homes, government seized properties and bank owned commercial properties. There is also the possibility that the bank will issue a notice of default.
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Foreclosures – A Do-It-Yourself Guide
If you’re a victim of foreclosure, you need to learn what foreclosure actions the lender has in store for you. The most common foreclosure actions are pre-foreclosures. Pre-foreclosures occur when the lender issues an executive order allowing the bank to take over your home in the event you do not make payments. Other types of pre-foreclosures will include bank owned homes, government seized properties and bank owned commercial properties. There is also the possibility that the bank will issue a notice of default.
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While these foreclosure actions are the most common, there are also other common foreclosure defenses. Common defenses include tying up loose ends with homeowners, non-dischargeability of debt, deed in lieu of foreclosure, forbearance, and assignment of mortgage to another property. However, it is important to note that homeowners are not always entitled to these defenses. In some cases, the court may rule in favor of the bank.
When the lender issues an executive order allowing a bank to take over a property, the banks must abide by the order or face severe penalties. To date, the most popular executive orders providing for bank foreclosures have been issued in Maryland, Delaware and Rhode Island. In order to avoid the penalties that may be levied if one does not abide by an order, homeowners in the three states should consider writing a” hardship letter,” or a” hardship letter to stop foreclosure.” The hardship letter is typically a page or two long and can easily be prepared on one’s own. Click here for more information about bankruptcy lawyer Phoenix AZ
Another type of foreclosure actions that are commonly associated with state laws is the servicer sale. The servicer serves as the official agent and manager for the bank, providing it with details on how the property will be sold, who are eligible to bid on it, and terms of the sale. In some cases, homeowners can stop the sale by filing a “short sale” action against the service. However, many homeowners may not be aware of the defenses available to them in such actions.
There are certain foreclosure actions in which homeowners may be able to avoid eviction through a “fha-insured single family” loan modification. This type of modification may be offered through the Federal Housing Administration. The FHA-insured single family loan modifies the monthly payments into a loan with a substantially lower interest rate, thereby decreasing the monthly payment. To qualify, borrowers should have an FHA-insured mortgage and be experiencing a “hardship.” Homeowners who are experiencing an event beyond their control (such as suffering from job loss) that is preventing them from paying their mortgages may be able to work directly with the Department of Housing and Urban Development, or HUD, to adjust the terms of their loan to make them affordable.
If the homeowner is unable to work directly with HUD, they may file a complaint with the U.S. trustee who is responsible for overseeing the lender’s foreclosure activities. The complaint would provide proof of the inability of the borrower to pay, along with proof that the inability to pay does not excuse the lender from its responsibility to repay the loan. The U.S. trustee then determines whether the lender has the authority to continue the foreclosure. If the trustee rules in favour of the lender, the borrower will lose his or her house and forfeit all the monies owed.
