Frequently Asked Questions about Foreclosure
When a homeowner can no longer make payments, the lender will have to decide what actions to take to recover the balance of the loan. When a deal cannot be met and the homeowner has no way to catch up on late payments, the lender may begin the foreclosure process. During the foreclosure, the homeowner will forfeit his or her rights to the property and the lender will attempt to recover as much of the balance as possible by selling the home.
If you are going through this process, you may have countless unanswered questions. Here are some needed answers from attorney Timothy McFarlin and the legal team at McFarlin LLP.
What is the difference between my loan servicer and my mortgage lender?
Mortgage lenders provide the funding for loans, but they do not always handle the payments. Many mortgage lenders hire loan servicers to manage payment collection. Therefore, if you begin to miss payments, you may hear from the mortgage servicer and not the original company from which you obtained the loan.
When should I call my loan servicer?
As soon as you are aware that you may miss a mortgage payment, you should call your loan servicer. Do not wait until after your interest rate has increased or until you have fallen behind on your payments.
Do I have to speak with my loan servicer?
If you are worried about what will happen when you call your loan servicer, you can obtain the services of a housing counselor. They can guide you through your legal rights and options.
What happens during the foreclosure auction?
If the foreclosure process is underway, the lender may sell your home. At the scheduled auction time, an auctioneer will attempt to sell your home to the highest bidder. The highest registered bidder will have to pay a deposit and establish a payment plan to pay the remaining balance of the bid within a certain amount of time. After the foreclosure deed is recorded, you will be asked to leave or face eviction.
What happens after foreclosure?
Once your foreclosure deed has been filed, you are officially a tenant of the new owner. If you do not leave, the new owner will likely start the eviction process. Furthermore, if the mortgage lender received less than what is owed during the foreclosure auction, you may still owe money on your loan to make up the deficiency balance.
How do I recover from foreclosure?
Your financial hardships will not automatically stop after a foreclosure. Your credit score will take a significant hit and it will be challenging to reestablish your credit until enough time has passed. For many homeowners, a foreclosure will have an impact on their ability to obtain a loan for over seven years. You can, however, apply for a new credit card to establish credit.
Make sure you make payments in a timely manner and keep an eye on your finances. It may only take a couple of years to get back on your feet without the burden of costly home payments. Contact an experienced Orange County foreclosure attorney from our law office for more information by calling (888) 728-0044.Post Tags: