When a mortgagor (borrower) skips or fails to make mortgage payments to their lender, foreclosure happens. In essence, foreclosure ends the buyer’s rights to the property purchased under the mortgage agreement
When a property is in foreclosure, the lender might sell it at a foreclosure sale. Foreclosure sales can be handled by the courts, the mortgage lender directly, or a third party.
What is the meaning of pre-foreclosure?
Pre-foreclosure is a property state where the owner has been notified that the property will be repossessed soon. As a result, the bank or mortgage lending institution is usually starting the pre-foreclosure process.
When the mortgage lender issues a “Notice of Default” for the home, pre-foreclosure officially begins. If the debt is not paid or handled, legal action and foreclosure may be taken against the homeowner.
Pre-foreclosure vs. Foreclosure: What’s the Difference?
When a homeowner has skipped payments and is 90 days late on their mortgage payments, the bank has started the foreclosure procedure. The property is in the process of foreclosure but is still legally owned by the owner in the pre-foreclosure stage.
Foreclosure occurs when a property lender or bank takes possession of a property because the owner has failed to make payments. Your home will be put into foreclosure and auctioned off to the highest bidder by the lender or bank in the foreclosure stage.
Is it still possible to avoid foreclosure at this point?
Yes, one of the primary goals of pre-foreclosure is to provide the homeowner the opportunity to make changes to avoid foreclosure. A homeowner can typically take actions to avoid foreclosure in this situation, such as:
As a result, pre-foreclosure is frequently referred to as a “grace period” during which debts can be addressed and the owner’s title to the property retained. If this is not achievable, you may face foreclosure or other legal action.
Is a Lawyer Required to Help Me With Pre-Foreclosure Issues?
While pre-foreclosure is a significant issue regarding legal property status, it usually does not necessitate legal assistance or involvement. The most important thing is to determine whether you can stop the foreclosure process by paying off any outstanding balances. You have any issue regarding this, you can definitely come to us, we are the best foreclosure attorney covina.
If you can pay off your balance, but your property is in pre-foreclosure, call your lender to see if they will accept a late payment for the compensation you owe. It’s important to remember that your lender has the power to refuse your late payment. The first step in preventing a foreclosure is to call your lender and learn about your choices.
If your lender states you don’t have a balance and aren’t in pre-foreclosure, but you received a notice stating you are, it’s critical to contact a local foreclosure lawyer as soon as possible.