Facing Foreclosure

Foreclosure is usually defined as the process through with a mortgagee either sells the home of a mortgagor or takes possession of the said property in order to recover the amount owed by the mortgagor. Facing foreclosure usually comes with its share of problems and stress and if not handled properly, or if it is not understood by the parties involved, there will be a lot of misunderstandings. The number of foreclosures in the United States vary from state to state. From a high of 1 in every 487 homes in Nevada to lows of 1 in every 10,614 homes in West Virginia. This disparity, although influenced by a multiplicity of factors, is also more or less in accordance to income distributions in the states. So what are the steps in foreclosure and what should the mortgagor do?

Steps in foreclosure

Before the lender takes any foreclosure measures, he or she is required by law to prove that the borrower has defaulted. As a borrower, if you fall behind in payments and your financial situation does not seem promising in the immediate future, it is advisable to approach the lender, explain your situation and come up with a collective course of action. The lender will usually present a notice of default to homeowners with later payments. The lender usually gives the borrower a breakdown of the amount owed, the overdue payments and the amount of time they have to pay up. The time given is usually 30 days. Upon lapse of these days, if the borrower has complied, the foreclosure process ends but if not the lender files a public default notice.

Once the notice has been filed, the lender may seek court action to recover all or part of the loan amount. However, if it proves impossible to recover the money, the lender will seek to sell the property mostly through an auction. The lender must then file a notice of sale upon which the borrower is expected to vacate the home to facilitate sale. The notice of sale is usually filed around 90 days from the day the public notice of default was filed. The Property is then sold and the sales proceeds are used to settle the mortgage. The borrower may decide to oversee the sale himself if he is certain that the house can fetch a higher price than the owed amount. This allows him to keep the extra cash and pay off the mortgage in full.

CastleStone Realty, LLC

Once faced with foreclosure, it is better to approach a specialized institution like CastleStone Realty, LLC to help you in dealing with this in an efficient and faster way. First, we will help you in getting the financial resources required as fast as possible and therefore help you in eliminating many stressful nights. We purchase houses facing imminent foreclosure and pay up in cash. We will also help you in getting the documentation right. This will save you a lot of time and effort since we have great experience in this. It will also ensure that the paper work is done right to avoid legal issues later on.