A mortgage is a real estate lien on your property, placed by a bank or financial institution, for money that you borrowed from the financial institution in order to pay for the property. When a mortgage has been signed and approved, you will have the obligation to pay back the loan for the property, plus interest, and the financial institution will have the right to foreclose your property if you do not repay the mortgage.
A mortgage transaction involves two documents: the promissory note and the mortgage (or deed of trust):
Choosing the right mortgage is important to ensure your financial stability in the future. Here are the main types of mortgages:
Before applying for a mortgage, you must be able to provide the following information:
One of the more common outcomes of a mortgage lawsuit is that the lender may be granted a lien, which would allow them to take possession of some of the borrower's property (aka the homeowner) to make up for the payments.
Once you fail to pay your mortgage or deed of trust, your lender has a right to begin the foreclosure process. Even after the lender begins the foreclosure process, you are given a grace period to pay your missed payment. If you do not pay your mortgage by the end of the grace period, your lender may report you to the credit bureau which will bring down your credit score and be on your credit history. You will also get a default notice and notification that foreclosure will begin on your property. If you are not able to pay off your missed payment plus interest in full by the time foreclosure begins, your lender or the courts will take control of and sell your home. Your lender is paid the remaining amount of the loan from the proceeds of the sale.
Other remedies may include garnishment of wages to make up for the missed payments. However, the parties can sometimes agree to a new debt arrangement that would be more beneficial for each party. If you are behind on your mortgage payments, be sure to look over your mortgage agreement to see if it is possible for you to create a new debt arrangement.
Buying a house is a complex and daunting task, but if done wisely, can save you a lot of money over the duration of your mortgage. A real estate attorney familiar with the market in your area can be a helpful guide through the process.
Last Modified: 03-01-2018 06:37 PM PSTLaw Library Disclaimer
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