Foreclosure is the legal process in which a lender or creditor tries to recover the balance from a borrower or debtor of a loan. This usually happens if the debtor has failed to make payments, which leads to the lender forcing the sale of an asset in use as collateral for that loan. Such cases of foreclosure usually arise in cases of mortgages. This is a common cause for foreclosure Royal Palm Beach.
When the borrower defaults in payment of a loan, the lender will repossess the property set as security interest. In this process of foreclosure, a lender seeks foreclosing. There are different types of foreclosure Royal Palm Beach. These are:
This is by judicial sale. This is where the sale of the property is under supervision by court. In this case, the proceeds from the sale go first to paying off the mortgage, then other holders of lien and lastly if there is a remainder, the borrower. The lender therefore files a lawsuit, which is against the borrower.
Non judicial foreclosure
This is by power of sale. If such a clause is in the mortgage then it is applies. This can also be in the deed of trust that is in use instead of the actual mortgage. This is where the lender sells the property without any supervision from the court. This process is cheaper and faster.
There are times when the borrower might want to avoid foreclosure. It is therefore important for you to know how one can obtain foreclosure prevention. The following are ways in which you can prevent foreclosure Royal Palm Beach
Modification or refinancing of your loan for lower repayments
This is where you get your monthly payments lowered to enable you to pay affordably. This is by arranging with the lenders to ensure that you repay them without strain
Managed exit for a borrower
Borrowers whose payment has become unaffordable may have eligibility for deed-in-lieu or short sale foreclosure. This also includes redemption, where your home is sold but you can still reclaim it.
Declaring and filing for bankruptcy may present you with ways of foreclosure prevention.
Foreclosure Royal Palm Beach therefore sees that the lender gets to have their loan repaid after the borrower defaults in payment through sale of property.