The legal proceedings initiated by a creditor to repossess the collateral for loan that is in default.
–(foreclosure. (n.d.). WordNet® 3.0. from Dictionary.com website: http://dictionary.reference.com/browse/foreclosure)
When solving problems, it’s often helpful to define them. If you’re a homeowner and have found this site because you’re looking for help to get out of foreclosure, you probably don’t need that definition. However, it serves as a starting point to discuss the foreclosure process and what you can do stop it. As you can see from the definition, the idea of a foreclosure does not apply solely to home loans…a lender could foreclose on any loan if it is past due. The Truth in Foreclosure site, however, only addresses home foreclosures…which is probably what drew you here in the first place.
You’ve undoubtedly heard stories of houses being sold on the auction block and families being put out on the street because their house was foreclosed. While that can happen, there are also a myriad of other ways you and your family can exit the foreclosure process. In many of them you can stay in your home without any fear of your home going to auction. Several other options include you moving out of the house at a time of your choosing rather than your home being sold on the auction block.
Foreclosure is governed by the laws of your state…every state is different. You can find out your state’s laws on this site..just click here. One of the first items you should determine is whether you live in a “judicial” or “non-judicial” foreclosure state because knowing this will give you an idea of where you are in the foreclosure process and how much time you really have to play with.
The type of mortgage you have also plays a big role in what foreclosure workout options are available to you and how willing the bank may be to help you save your home. In today’s market, though, almost every lender has many more homes entering foreclosure than they can deal with, so by being proactive, you stand the best chance of saving your home. Your lender doesn’t want you to lose your home any more than you want to lose it. Check out “Why Banks Don’t Want Your Home” to see just how much it costs a lender to foreclose; it’s truly amazing.
Whether your loan is currently in default or you’ve started researching options because you know you’ll be entering default in a few months, you’ve come to the right place. Loan defaults happen for all kinds of reasons from financial hardships to predatory lending to poor spending habits. Truth in Foreclosure is here to help no matter the reason. No one can guarantee they can save your home without a complete and thorough evaluation of your situation because every situation is different. But you’ve come to the right place to begin the journey toward saving your home.
Tags: Foreclosure, judicial foreclosure, non-judicial foreclosure
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