Losing a home attracts scams - mortgage news
Thursday, July 3, 2008
If you've been told that your house is going into foreclosure, that means your mortgage company plans to sell your home to pay off the loan it made to you.
In order to purchase your home, you borrowed a large sum of money and signed a promissory note to repay it. You also posted your home as collateral to ensure payment of the debt to the bank. This is done by signing a deed of trust which allows a third party to hold a security interest in the home until the loan is repaid.
If the note is not paid off, or the payments become delinquent, the third-party trustee is sent instructions to foreclose. However, most mortgages contain grace periods, and many lenders will wait until a mortgage is several months late before starting foreclosure proceedings.
The foreclosure procedure takes a minimum of 111 days. The first step is for the trustee to file a notice of default, which is recorded and remains in place for 90 days.
If the loan is not brought current or some resolution made, the trustee then files a notice of sale, setting a sale or auction date for the property at least 21 days in the future.
The sale is publicized and the public is invited to show up and bid on your property. If there are no successful bidders, the bank will then take the property back and own it at that time. The result is that you end up living in property you no longer own.
Read more Article...
In order to purchase your home, you borrowed a large sum of money and signed a promissory note to repay it. You also posted your home as collateral to ensure payment of the debt to the bank. This is done by signing a deed of trust which allows a third party to hold a security interest in the home until the loan is repaid.
If the note is not paid off, or the payments become delinquent, the third-party trustee is sent instructions to foreclose. However, most mortgages contain grace periods, and many lenders will wait until a mortgage is several months late before starting foreclosure proceedings.
The foreclosure procedure takes a minimum of 111 days. The first step is for the trustee to file a notice of default, which is recorded and remains in place for 90 days.
If the loan is not brought current or some resolution made, the trustee then files a notice of sale, setting a sale or auction date for the property at least 21 days in the future.
The sale is publicized and the public is invited to show up and bid on your property. If there are no successful bidders, the bank will then take the property back and own it at that time. The result is that you end up living in property you no longer own.
Read more Article...
Posted byAdmin at 5:17 AM
Labels: foreclosure, mortgage in short sale, mortgage news
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