What is Foreclosure

What is Foreclosure - What is Foreclosure Foreclosure is...

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What is Foreclosure? Foreclosure is the legal process by which a lender, usually a bank, takes possession of a mortgaged property as result of failure to keep up on payments. Types of Foreclosure: Judicial- A court decrees the amount of the borrowers’ debt and gives them a short time to pay. If the borrower fails to pay within the time, then the court will issue a notice of sale. Non-Judicial- This is used when a power of sale clause exists in a mortgage or deed of trust. This is a deed in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of a default. The power is given to the lender to sell the property. Process of Foreclosure: First month missed payment- you will be contacted by your lender either by phone or mail. Second month missed payment- Your lender will begin calling you. It is important that you take their calls and explain your situation and your plans of resolution. Currently, you may be able to make a payment to prevent yourself from falling too far behind. Third month missed payment- After the third payment is missed you will receive a letter from
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This note was uploaded on 12/01/2011 for the course HDF 411 taught by Professor Staff during the Spring '10 term at Central Mich..

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What is Foreclosure - What is Foreclosure Foreclosure is...

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