Commonly, a homeowner will take out a home loan from their bank, while using the home as collateral for repayment of that loan. This creates a mortgage for the property, and if the homeowner cannot repay the loan, the lending institution can take the property, or foreclose on it, and use the ownership or sale of the home to fulfill the debt.
Though states vary on how the foreclosure process is handled, there are six general phases that occur in the process.
Often times, a lender will do what they can to allow the borrower to catch up on the loan. Catching up on payments becomes increasingly difficult, so if something happens such as landing a new job after a time of unemployment, it is worth speaking to your lender and attempting to work something out to avoid foreclosure.
An acceleration clause, also known as an acceleration covenant, will require the borrower to immediately pay off the loan in its entirety, provided that certain conditions are met. For instance, if you miss “x” amount of payments, the acceleration clause may be triggered. The best way to avoid triggering the acceleration clause, is to avoid missing payments.
Sadly, there is little an attorney can do to help stop a foreclosure process. Typically, the bank/lender has every right to foreclose on the property, especially once the property has gone into default and the owner is behind on payments. In rare cases a real estate lawyer can help, but only in cases of a fraudulent foreclosure or some other interference. If you have been paying your entire mortgage balance and are not behind on payments, but are still being foreclosed, then it is in your best interest to contact your lender to find out what happened.
If it becomes clear that you are a victim of foreclosure fraud or some mortgage scam, then have your evidence ready when you contact a local real estate lawyer. But your first step should be to find out the amount that you owe and why your home is being foreclosed, so if you need to contact a lawyer they can best help you.
Last Modified: 04-12-2018 04:08 PM PDTLaw Library Disclaimer
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