What can a mortgage company do in a foreclosure?

by oliver on September 30, 2010

Question:

What can a mortgage company do in a foreclosure?

Answer:

In a foreclosure process, the mortgage company is usually the one who holds the cards. The process, as well as its time frame, depends on the state. If the borrower is behind his mortgage payments for at least thirty days, the lender can foreclose on his home or property.

A default notice will be issued to the borrower, which signals the start of the foreclosure process. During this time, the bank can order an appraisal of your property, however, the appraiser cannot have access to the inside of your property. Therefore, prior to the foreclosure where the property is still in your legal possession, the debtor has a right to refuse access to the home or property. A notice of sale will then be issued to the borrower and will be posted on the local newspaper. This notice will contain information on the date and location of the foreclosure sale, wherein the house or property will be sold to the public thru an auction. During the sale, the one who gives the highest bid will get the right of ownership to the property.

After the auction, the new owner can take over or repossess the property from the previous homeowner. Some states allow redemption rights, wherein the previous homeowner is given the chance to reacquire the property by paying the total debt owed in addition to the loan fees and interests. You can check your local county whether or not this law is practiced in your state. Remember that prior to the foreclosure process, the mortgage company cannot threaten the borrower with physical as well as physical harm. Therefore, it is very important to contact a real estate attorney to know more about the details.

Leave a Comment

Previous post:

Next post: