Foreclosure refers to the process in which lenders will repossess the property of borrowers. They will try to get their money back by taking legal action against borrowers who have stopped making payments. For instance, they could take ownership of the house, have it sold and the proceeds used in paying off the loan. When it comes to the process of foreclosure in Northwest Indiana, it will be important to understand what it involves.
When you buy property like a home, there is possibility that you may not have enough money to have it paid for at once. There is however the option of paying some portion of the price as down payment and the rest to be borrowed. The money that is borrowed is supposed to be paid off within an agreed period. As part of the agreement for the loan, the property that is purchased will act as collateral. The property will be taken over by the lender when payments are stopped.
The process of foreclosure is one that can be very costly. As you stop making payments, there will be legal fees and penalties charged by the lender. Any fees that are added to your account are bound to increase debts to the lender. The process will also eventually hurt your credit scores because the credit report will show the foreclosure. This means you will not find it easy borrowing.
There are different options which are available which are used in prevention of foreclosure. Communication with the lender is a major way to ensure your property is not foreclosed. You should inform the lender of any financial challenged and how you plan to make the payments. Ignoring payments from lenders would not be a good idea. There are notices given by lenders before the process is initiated. Borrowers should seek advice from attorneys.
There is the option of filing for bankruptcy in order to avoid foreclosure. There are various forms of bankruptcy and the services of an attorney will come in handy. Before a decision is made to apply for bankruptcy, you will need to know the effects the decision will have. A homeowner could also consider opting for a short sale. This is where you are allowed to sell the home and use the proceeds to pay the lender.
Foreclosure as a process is very slow and could take one or two years. After payments have been missed for around three months, a lender will conclude that the borrower is defaulting and this initiate the process. They will provide a notice to have the process initiated.
In many cases, a lender will be required to offer the borrower some relief so as to stop the process. For instance, a lender might say that you can stay in the home if you are able to make part or lumpsum payments of the missed payments. They will also require you to settle legal fees.
If the process of foreclosure cannot be prevented, auction or eviction will be the next step. If by any chance there is no willing buyer, ownership is transferred to the lender. In such instances, what follows is eviction.
When you buy property like a home, there is possibility that you may not have enough money to have it paid for at once. There is however the option of paying some portion of the price as down payment and the rest to be borrowed. The money that is borrowed is supposed to be paid off within an agreed period. As part of the agreement for the loan, the property that is purchased will act as collateral. The property will be taken over by the lender when payments are stopped.
The process of foreclosure is one that can be very costly. As you stop making payments, there will be legal fees and penalties charged by the lender. Any fees that are added to your account are bound to increase debts to the lender. The process will also eventually hurt your credit scores because the credit report will show the foreclosure. This means you will not find it easy borrowing.
There are different options which are available which are used in prevention of foreclosure. Communication with the lender is a major way to ensure your property is not foreclosed. You should inform the lender of any financial challenged and how you plan to make the payments. Ignoring payments from lenders would not be a good idea. There are notices given by lenders before the process is initiated. Borrowers should seek advice from attorneys.
There is the option of filing for bankruptcy in order to avoid foreclosure. There are various forms of bankruptcy and the services of an attorney will come in handy. Before a decision is made to apply for bankruptcy, you will need to know the effects the decision will have. A homeowner could also consider opting for a short sale. This is where you are allowed to sell the home and use the proceeds to pay the lender.
Foreclosure as a process is very slow and could take one or two years. After payments have been missed for around three months, a lender will conclude that the borrower is defaulting and this initiate the process. They will provide a notice to have the process initiated.
In many cases, a lender will be required to offer the borrower some relief so as to stop the process. For instance, a lender might say that you can stay in the home if you are able to make part or lumpsum payments of the missed payments. They will also require you to settle legal fees.
If the process of foreclosure cannot be prevented, auction or eviction will be the next step. If by any chance there is no willing buyer, ownership is transferred to the lender. In such instances, what follows is eviction.
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