General Definition of Foreclosure
- A Foreclosure is a legal process where the ownership of a property can be changed after the borrower (the person who borrowed money to purchase the property) fails to make the required mortgage payments.
- The Pre-Foreclosure process begins when the borrower defaults on the mortgage loan (the borrower has not made the agreed-upon mortgage payments. This process begins at day 31 of a missed payment.
- Foreclosure laws and procedures can vary significantly from one jurisdiction to another.
- Some jurisdictions require lenders to go through a lengthy judicial foreclosure process involving the court, while others allow for non-judicial foreclosures, which are typically faster and involve less court oversight.
- A Foreclosure can have serious financial and legal consequences for borrowers in default
- A Foreclosure default creates damage to their credit scores
- A Foreclosure default can result in the loss of their home(s)
- Borrowers facing financial difficulties should contact and consult with me me to explore options for avoiding Foreclosure
- Our Consulting Services are FREE
Our Process
- Provide you with a general education of the foreclosure process in your area
- Help you develop a plan on how to approach your lender
- Help you decide who is best suited to talk to your lender
- Help you create a custom plan based based on your borrower options
- Help you begin the Option / Negotiation Processs with your lender
Lender Prep
- We help you create a factual and detailed written description of your household finances
- An example of this is on our Save or Sell page https://rrepros.com/save-or-sell/
- We want you to understand your options BEFORE speaking to your lender
- Questions for your plan to offer:
- Should you plan to sell to a cash investor? (less money for you)
- Should you plan to sell with a Realtor? (typically more money for you)
- Forbearance
- Deed in Lieu
- Loan Modification
- Short term payment arrangement
- Sell via Assumption
- Other
- Should you develop an exit plan?
- Walk away (NEVER recommended)
- Cash for keys
Financials
- Your personal and financial information must be complete BEFORE you speak to your lender
- Your financials plan needs to be done BEFORE speaking to your lender
- All calls are likely recorded
- Your plan and timing may determines whether your lender can help you save your home
- For our FREE worksheet, go to https://rrepros.com/save-or-sell/
Pre-Foreclosure
- Starts at Day 1 of a missed mortgage payment
- Begins a leagl process the Lender must follow in your jus=risdiction
- You have more options to work with your Lender when at this stage
- Pre-Foreclosure is considered Day 31 until the day the law firm receives your case
- Once a Sheriff’s Sale date has been made, your option are reduced
- Once lis-pendns (legal paperwork) has been filed, you are now in Foreclosure
Sheriff’s Sale
- Home is sold at an In-Person or county auction
- You will NO LONGR own your home effective immediately
- STRONG SUGGESTION for some areas: Do NOT move out of the property
- Most jurisdictions have a Redemption Period
Redemption
- In some areas the time period immediately after Sheriff’s Sale
- In some areas it could be to your advantage to NOT move out of the property!
- You have legal rights to the property during this time period
- If the property looks as if it is in disrepair the purchaser of the loan can reclaim the property
- If the property looks abandoned the purchaser of the loan can reclaim the property
- You may have options to reclaim the property
- You may have options to sell the property
- You may (upon sale) be able to put money in your pocket
After Redemption
- You are trespassing
- You could be removed by law enforcement
- Your possessions could be renoved by law enforcement
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