Foreclosures

What Is A Foreclosure And How Does It Work
A foreclosure is the legal process by which an owner’s right to a property is terminated. If you have bought a home using a mortgage loan, your lender will have taken a security interest in the property. If you find that you cannot keep up with mortgage repayments on your home, the security interest gives the lender the right to proceed with a foreclosure. This typically involves a forced sale of the property with the proceeds being applied to the mortgage debt.
If your property is not sold or the sale price is not enough to cover the lender’s loan, a deficiency judgment could be pursued against you. A foreclosure and a deficiency judgment will seriously hinder your prospects to obtain real estate in the future.

What Are The Consequences Of A Foreclosure?

• The foreclosure judgment will be something you MUST disclose on any application regarding your background. It will be present on your credit report and will hurt you whenever credit is a factor in a decision, including getting a job.
• A deficiency judgment is a monetary judgment. Thus anything you purchase could be attached by the Lender, be it an automobile, jewelry or a new swing-set for your kids.
• Your wages can be garnished.
• Your bank accounts can be frozen and attached, without any advance notice.
• You will be subject to periodic depositions in aid of execution and have to provide copies of all of your financial matters, several times a year. If you repeatedly don’t show up for these proceedings, the court can hold you in contempt and even put you in jail until you comply.
• The judgment usually carries interest.

For a homeowner there is no upside to going into foreclosure. It should be avoided at all costs. I can help you with this by negotiating with your lender to accept a Short Sale!