The threat of foreclosure has become a modern day dread with changing financial climates. The rocky road to home owning can be fraught with trouble if a person loses their job, gets temporarily laid off, and can’t pay their mortgage. The legal process of ‘foreclosure’ involves the taking back of a property that has been used as collateral for a loan. In the case of a home owner, for instance, they take out a mortgage on a property and that property is owned, effectively, by the home owner. However, because of the mortgage being ‘owned’ by the lender, the home doesn’t effectively belong to the home owner, but to the lender, simply by the fact that the house is used as the valuable asset by which the loan is paid off. In the event that the home owner defaults on their payments the lender has the legal power to stake a claim on the property but following the correct ‘foreclosure’ procedures, usually through the court process.
Foreclosures have different legal processes and requirements. For instance, a foreclosure attorney in Chicago might deal with judicial foreclosure, whereby the mortgaged property is sold under the courts supervision to recover any costs outstanding. On the other hand, they might also deal with a non-judicial foreclosure that offers a ‘power of sale’ to pass the property to another buyer and pay off the debt b before any court proceedings are started. A ‘Strict’ foreclosure involves only a few states whereas the other types of foreclosure are available in all states. Only Vermont, Connecticut and New Hampshire have the strict foreclosure that gives a specific period of time for a sale before the authority of the lender steps in.
Preventing Foreclosure
It is not always easy or possible to prevent foreclosure once the process has begun, but it is possible to prevent it if you think ahead. When you buy a home it costs money to pay all the bills as well as all the sundries that go with the buying process. Putting a little money by in the case of a rainy day is always the best way to deal with possible financial problems, but if you use that, you could opt to refinance. visit the Chicago Debt Solutions for more details. You can like them on Facebook.
