Understanding Foreclosure

Making Payment Arrangements to Avoid Foreclosure

Even if you have fallen behind a substantial amount, it doesn’t have to mean foreclosure. Keep in mind that your lender would much rather get payments of any kind rather than foreclose on a property. Lenders are simply not interested in selling real estate.

So, what does this mean for the buyer? It means that there are extra measures that can be taken to avoid foreclosure. If being foreclosed on is a real possibility, call your lender. They might be willing to offer a different kind of payment plan to fit your financial situation better.

If you don’t call your lender and simply miss payments, they can start the process of foreclosure. When this happens, the lender will request a trustee (usually the title company) file a notice of default. You will get that notice in the mail.

Should the conditions of the default not be met, the lender can instruct the trustee to sell that property. Selling a foreclosed property takes place in a public sale in order to meet payment on that property.

Public Sale of a Foreclosed Property

When a public sale takes place, notice has to be published. This can happen in a local newspaper and must be posted in a public place for three consecutive weeks. When that notice of sale is recorded, the property owner facing foreclosure will have time to make a payment. That time period is up until five days prior to the published sale date. That payment is what makes the loan current.

When the property owner makes that payment and is no longer in default, the deed of trust is then reinstated. It also means that the property owner can go back to making their mortgage payment as they would in the original agreement.

If making the loan is still not an option, the property owner might be able to work out what is known as a postponement of the sale agreement with the lender. Should no agreement be reached, the lender can then move forward with selling the property.

New buyers that bid on the property at the sale have to pay the amount of their bid in cash, check, or any other acceptable payment method. Those payment methods will be specified by the trustee. The lender can also “credit bid” up the amount that is owned by the original owner to ensure that they get the payment.

Don’t let foreclose turn into a real-life nightmare. Call Super Brokers to get the assistance that you need to make a change for the better and avoid losing your home.