Article by Petra Norris
Working as a short sale agent in Lakeland FL, I’m often asked how the foreclosure process works. Now if you are getting letters from your lender(s) and you ignore them, you certainly will be forecloed on your Lakeland FL home. Richard Zaretsky, a reputable Florida real estate attorney, wrote this excellent article about the Florida foreclosure process.
Foreclosure can be avoided through loan modification, however this is a rare case that you really save on your loan modificaton after it is all said or done. Forebearance or if you got laid off you may qualifiy Home Affordable Unemployment Program.
If there is no hope and you have exhausted all your options, your best option may be selling your Lakeland Fl home as a short sale to avoid foreclosure.
There are quite a few programs lenders offer homeowners, such as HAFA, also known as Home Affordable Foreclosure Alternative Program, FHA-HUD preforeclosure sale, for military personnel HAP program.
The time banks foreclose have tremendously increased, which allows you to act as soon as possible.
Via Richard Zaretsky, Florida Real Estate Attorney:
As an attorney I often consult with homeowners that are in distress along with the Realtors that represent them in trying to accomplish a short sale. Often a detailed explanation of the foreclosure process would be very worth while for my client to have a thorough understanding of what they may be facing as the lender seeks to enforce the promissory note and mortgage. We usually don’t have enough time to explain the process in full, so here is an article that should help non-lawyers understand what is happening according to rules of procedure in the court system and what options lenders have for enforcing the money they loaned to the homeowner.
The Promissory Note – the obligation to pay back the borrowed money -In the beginning there is a PROMISSORY NOTE. This is a promise to repay money that is being given by the HOLDER, usually a bank or LENDER. To be sure the promissory note is repaid the HOLDER wants some collateral. The collateral could be anything from your heirloom watch to your car, but for our discussion purposes it will be your house.
The Mortgage – the collateral of your promise to pay back the borrowed money -
The typical way to provide the collateral of your house to the HOLDER of the promissory note is to sign a MORTGAGE. The mortgage is not a promise to pay any money. It is merely the promise that if the promissory note is not paid according to its terms, the HOLDER of the promissory note has the option of selling your house and taking from the proceeds of that sale only enough money to pay back the promissory note, giving to you the balance of any excess money from that sale.
Why do I get sued if I don’t pay the money to the Lender?Understand that the HOLDER does not
Tags: EXPLANATION, Foreclosure, LAWYER'S, Process
