Can someone explain the mortgage foreclosure process?

by oliver on September 30, 2010

Question:

Can someone explain the mortgage foreclosure process?

Florida. Also, can a mortgagee put a lien on other assets if not used as security in that mortgage?

Answer:

The process of foreclosure varies by state but here is the general flow of the process. First, the lender files for a foreclosure against the borrower if the latter is behind his payments for at least 3 consecutive months. A notice of foreclosure or default is sent to the borrower, informing him of his debt and an upcoming foreclosure. The borrower is given ample time to make his mortgage payments current. During this time, the borrower may also work out an agreement with the lender to settle the situation without having to continue foreclosure.

However, if the borrower was not able to make his payments current and was not able to make an agreement with the lender, a notice of sale is issued. This notice is usually given about 21 days prior to the date of sale of the house. In the auction, the person or party who gives the highest bid to the property wins the right of ownership. The new owner may then request for an eviction process, in order for the previous owner to be removed from the property. In some states, the lender may file for a deficiency judgment in order to get the difference amount, in case the highest bid is less than the total amount that the borrower owes.

{ 1 comment… read it below or add one }


Fatal error: Cannot assign by reference to overloaded object in /home/foreclop/public_html/wp-content/themes/thesis_17/lib/classes/comments.php on line 177