It is virtually impossible to go through a day without reading something in the news media about our current economic problems. Many newspaper stories and video reports mention bankruptcy and foreclosure in a rather depressing way. Gaining control of your financial obligations is a much more preferable alternative to becoming the next bankruptcy victim for those of us who have financial commitments in the form of loans from a bank or loan provider.
If you have taken a loan by pledging your fixed property like your house as mortgage from a lender then you should know what the consequences are in case you miss the payment of loan installments in time. You should know what foreclosure is, connected with non payment of mortgage installments and from which point of time your mortgage company initiates foreclosure procedure against you.
Usually in most of the cases non payment loan installment for the first time may be taken lightly and the first step of foreclosure procedure begins with a mere late payment notice through a lawyer. But it is a warning bell for you to wake up and rectify your mistake by contacting your lender and make some arrangement from which you buy some extra time to regroup your repayment capacities.
At this point of time it is still at the discretion of the mortgage company to give you lenient options to proceed with payments. If you fail to convince the lending company about the reasons for your failure to meet mortgage conditions and you become a defaulter for a second time then you can sense your down fall in which losing your home is unavoidable.
When you become a defaulter for second time then the mortgage company will not hesitate to send you a legal demand notice and from here onwards you are responsible for the legal expenses of the mortgage company and your burden will be more with late fee penalties. In a foreclosure procedure a mortgage company can demand repayment of the full amount in lump sum and from here it is a Herculean task to escape from losing your home.
Lump sum or full payment is an important clause in any mortgage contract which is called an acceleration clause. Once the acceleration clause comes into effect then you will be left with only two options- either repay the full loan amount in a single installment or face final foreclosures procedures. Now the local sheriff will send a certified letter to you about the foreclosure of your property.
From this point forward, a lot of legal technicalities will ensue, whereby your home will be put up for auction and you'll have to watch powerlessly as the home of your dreams is bought by an unfamiliar party without your permission.
If you have taken a loan by pledging your fixed property like your house as mortgage from a lender then you should know what the consequences are in case you miss the payment of loan installments in time. You should know what foreclosure is, connected with non payment of mortgage installments and from which point of time your mortgage company initiates foreclosure procedure against you.
Usually in most of the cases non payment loan installment for the first time may be taken lightly and the first step of foreclosure procedure begins with a mere late payment notice through a lawyer. But it is a warning bell for you to wake up and rectify your mistake by contacting your lender and make some arrangement from which you buy some extra time to regroup your repayment capacities.
At this point of time it is still at the discretion of the mortgage company to give you lenient options to proceed with payments. If you fail to convince the lending company about the reasons for your failure to meet mortgage conditions and you become a defaulter for a second time then you can sense your down fall in which losing your home is unavoidable.
When you become a defaulter for second time then the mortgage company will not hesitate to send you a legal demand notice and from here onwards you are responsible for the legal expenses of the mortgage company and your burden will be more with late fee penalties. In a foreclosure procedure a mortgage company can demand repayment of the full amount in lump sum and from here it is a Herculean task to escape from losing your home.
Lump sum or full payment is an important clause in any mortgage contract which is called an acceleration clause. Once the acceleration clause comes into effect then you will be left with only two options- either repay the full loan amount in a single installment or face final foreclosures procedures. Now the local sheriff will send a certified letter to you about the foreclosure of your property.
From this point forward, a lot of legal technicalities will ensue, whereby your home will be put up for auction and you'll have to watch powerlessly as the home of your dreams is bought by an unfamiliar party without your permission.
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