What is Foreclosure?
Foreclosure is to way to bar a mortgagor's right of redeeming a mortgaged estate. It is a termination of all rights of the homeowner covered by a mortgage. Foreclosure is a process in which the estate becomes the absolute property of the lending institution.
The Foreclosure process begins when the homeowner fails to make payments of the money due on the mortgage at the appointed time. This may be due to several reasons. Unemployment, divorce, medical challenges, terms of the loan, sick of property management, and even death.
Foreclosure is applied to any method of enforcing payment of the debt secured by a mortgage, by taking and selling the estate. Borrowers and lenders now face a challenging situation. Both seek a compromise that permits a win-win outcome. The borrower to keep his home or business, the lender to keep receiving mortgage payments.
Foreclosure proceedings typically start with a formal demand for payment which is usually a letter issued from the lender. This letter of notice is referred to as a Notice of Default (NOD). Depending on your state, the lender will issue this notice when the homeowner has been 3 months delinquent on the mortgage payments.
The process of foreclosure in Florida can take over 12 months but each case can vary. A non-profit housing counselor can help you understand the process. Foreclosure can be devastating to your finances and your credit, and can make it more difficult and more expensive to borrow in the future. Be sure you recognize the signs and take action immediately.
Let the Trusted Participants of Take Root South Florida help you plan carefully before you make any decisions. Call the Take Root South Florida Information line at 211 or see our list of Trusted Participants for more information.