what causes a mortgage foreclosure
The question of what causes a mortgage foreclosure often comes up when one is just about to lose their home to foreclosure. Unfortunately, sometimes even with the best of intentions, homeowners find themselves in a situation where they cannot prevent a foreclosure from happening. So, what are some of the signs of imminent mortgage foreclosure? Some common signs include: Not being able to pay the mortgage loan. A mortgage that is not current is considered the default. When a payment is missed on a loan, the lender may want to go into court and have the homeowner evict them and seize their home. While this is not the only reason that lenders may initiate foreclosure proceedings, it is often the first step toward eviction. If you are wondering if you are late on a payment, the missed mortgage payment is the likely culprit.
Evictions occur when a lender takes a home through foreclosure or repossesses it through repossession. Usually, the lender may only repossess a property if it is in dire straights. If you have missed several mortgage payments and are behind on your mortgage, your chances of eviction are great. However, if you can prove to the lender that you have been paying your mortgage faithfully and have been avoiding foreclosure, your case may still be successful.
Once the bank takes possession of a property through repossession or foreclosure, they will often try to contact the homeowner to work out a payment arrangement. However, if these attempts to contact the homeowner fall flat, they will proceed to the next step of eviction. For the most part, a short sale or deed in lieu of foreclosure is the last resort of the bank. The process of a short sale is quick, easy, and does not involve court involvement. Typically, after 120 days, your lender will send you a check for the remaining balance of the mortgage balance.
what causes a mortgage foreclosure and what can I do ?
Many people believe that once they have been served with eviction notice, their home is lost. This is not true in every state, although most states do allow loss mitigation professionals to assist homeowners in preventing foreclosure. Loss mitigation services are non-profit organizations dedicated to helping families in need of foreclosure assistance. In many situations, loss mitigation services will stop the foreclosure and provide other assistance, such as loan modification, to the homeowner.
When it comes down to what causes a mortgage foreclosure, it’s really not much different from foreclosure to foreclosure. You need to act quickly to avoid being placed in a situation where you lose your home to foreclosure. Remember that the bank doesn’t want your house; all they want is the money that you make on your mortgage payments. It is possible to stop the foreclosure process before it gets too far along – but you need to act quickly so you can prevent further damage to your credit. Contact a foreclosure expert today and find out how you can stop foreclosure and save your home!
Related Article: Reasons For Foreclosure