Foreclosure Information
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Foreclosure Information - Glossary of terms*
- Foreclosure:
Some common misspellings : forclose, forecloser, forcloser, forclosure.
Foreclosure- A legal process in which mortgaged property is sold to pay the loan when the borrower defaults. - Forbearance:
an intentional delay in collecting a debt or demanding performance on a contract, usually for a specific period of time. Forbearance is often consideration for a promise by the debtor to pay an added amount. - Deficient : Incomplete; defective; not sufficient in quantity or force
- Mitigation:
A reduction, abatement, or diminution of a penalty or punishment imposed by law. - Bankruptcy:
A legal process by which individuals or businesses that cannot pay their debts can seek the assistance of the court in getting a fresh start. There are different types or "chapters" of bankruptcy including Chapter 7, Chapter 11 and Chapter 13. Special bankruptcy judges preside over these proceedings. - Trustee:
A person responsible for managing a trust and administering assets as dictated by the trust documents. - Lien:
a legal claim against property that must be satisfied When the property is sold - Deed:
A legal document transferring ownership of property - Deed-in-lieu:
Avoiding foreclosure , an agreement to give the mortgaged property to a lender as an alternative to foreclosure - Default:
The inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms. - Delinquency:
Failure of a borrower to make timely mortgage payments under a loan agreement. - Pre-foreclosure sale:
allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure. - Mortgage:
a lien on the property that secures the Promise to repay a loan. - Loss mitigation:
a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan - Judgment:
a legal decision; when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source
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The foreclosure information compiled on this page is to assist our visitor/customer in educating themselves.
If you do not find your answer with the foreclosure information on this page please contact our foreclosure analyst.
"*Definitions courtesy of "The concise Law Encyclopedia" and - the Department of Housing and Urban Development
FAQ- Frequently Asked Questions
Q. What is foreclosure?A. Foreclosure is a process that is initiated by a lender to claim property that they financed. Tthe process is put into motion by the lender because the homeowner has lapsed on the monthly mortgage payment. The lender then takes possession of the property and the homeowner has to forfeit not only the property but also the equity they may have accrued.
Q. What is loss mitigation?
A. Loss mitigation is a set of tools that the lender uses to stop foreclosure. Which could include: special forbearance agreement, loan modification, mortgage refinance , partial claim, pre-foreclosure sale and Deed-in-lieu of Foreclosure.
An agreement between the lender and homeowner to repay past due payments within an agreed to period of time is the goal of loss mitigation. Any of the previously mentioned tools or combination of each can be used by the lender to enforce the agreement.
Q. What is special forbearance ?
A. An agreement between the mortgagor and mortgagee to repay past due payments within an agreed to period of time.
Q. Should I contact my lender or contact an attorney?
A. Contact your lender first. You may be able to negotiate an agreement if you are only a couple of payments in behind. If you are able to get an agreement worked out with your lender , you just saved yourself the attorney's fees.
On the other hand if you cannot come to an agreed upon plan with your lender you would be better served to have professional representation.
Q. I have been contacted by some companies offering to buy my home. Is this good? What can Home Foreclosure Help offer me that is different?
A. There are a lot of predators out there ready to jump at the opportunity to buy your home at a discount. I would be very careful when considering this option. It depends on your situation, but you should have other options available to you.
Home Foreclosure Help doesn't buy homes. We are in business to help you stay in your home and restore your credit to its previous level.
Q. When should I consider selling my home to save my credit rating?
A. HomeForeclosureHelp (HFH) is not in the business to try to purchase or "steal" your home. I am sure you have visited sites offering you "help "with your foreclosure, with the lure to save/restore your credit rating. Selling your home is an option; however I would not consider it until I had made an effort to explore all the foreclosure information I could find and then discover my other options.
Q. What can loss mitigation do for me?
A. Basically it allows the homeowner to stay in their home and it also protects their credit history.
Q.How can I stop foreclosure?
A. If you haven't already contacted your lender; you have certainly should. It is the most powerful deterrent to stop foreclosure.
Q. When should I contact my lender?
A. The sooner the better is an old cliché that really fits here. If you know that you are in trouble financially and are not late for you next payment, by all means get in touch with your lender and inform them. Most lenders will appreciate the fact that you contacted them. "Time is of the essence" -
Q.When faced with foreclosure, how much time do I have?
A. YOU DON'T; If your lender has already started the ball rolling on the foreclosure process. You don't have any time. Time is not your friend when it comes to foreclosure. There is a timeline associated with the foreclosure process, but when it comes to the possibility of losing your family home and the equity you have accrued, you cannot act quickly enough. Not to mention your credit rating (the ability to get a good loan in the future).
Q.How much time do I have to stop my foreclosure?
A. Short answer, not much! The following timeline will vary depending on the state in which you reside, but until the foreclosure sale occurs there is still hope.
- Step 1. Pre-Notice of Default
At this point, the home owner is behind 2 or 3 monthly mortgage payments. The lender sends the Notice of Default to legally start the foreclosure process. In most cases though, banks and lenders don't send this until the fourth payment is missed. The lender does have the right to send it after the first missed mortgage payment. - Step 2. Pre Foreclosure
This stage is from the time the Notice of Default is sent and the actual attempted sale of the property. - Step 3. Foreclosure Auction Sale
This step is when the property is put up on auction at your city's court house. The proceeds goes to the bank or lender to cover the mortgage and other fees occured in the foreclosure process. - Step 4. REO / Real Estate Owned Properties
In some cases, the property does not sell, then the property becomes the property of the bank. They usually try to get an agent to help sell the property.
Q.Can I stop home foreclosure by filing for bankruptcy?
A. Yes! You can prevent foreclosure by filing for bankruptcy,
but at what cost? Frequently the monthly mortgage commitment under the
terms of the bankruptcy is often higher than your previous commitment.
Now you are not only faced with a higher monthly payment, but if you default
you will have a bankruptcy and a foreclosure on your credit rating….not
good! Consider this only as a last resort.
Q.How much do you charge to prevent foreclosure?
A. Each individual case is unique and depends on the state you
reside. When we offer you foreclosure assistance, you have the option
at that time to decide if you would like to proceed. Our loss mitigation
specialist will offer you free foreclosure information. Whether you contact
us by our HFHelpLine or by email we will keep the foreclosure information
you share with us confidential. We will answer any questions you may have.
Q. Can you help me even if I have talked to my lender and they
will not work with me on foreclosure prevention?
A. In most cases we can. Don't hesitate to contact us and share
your foreclosure information with our mitigation specialist.
Challenge our team! We have a very high success rate when it comes to
getting the lender to accept our terms on your behalf.
***Side Note ***
The foreclosure information compiled on this page is to assist our visitor/customer in educating themselves.
If you do not find your answer with the foreclosure information on this page please contact our foreclosure analyst
Behind on your Mortgage?
Want to see if we can help?You can apply right here for our foreclosure help. There is no obligation and it is free to apply. We will evaluate your application and have a response for you in 24 hours!
If you need more assistance in understanding how foreclosure works? Our Home Foreclosure Help analyst's will provide answers to your questions. Your personal foreclosure information will be kept confidential.
Call us at (800) 275-7420 or fill out our online form and we will have a foreclosure consultant contact you within 248 hours.
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