Legal Buying a foreclosed home,Los angeles real estate attorney 4 Things You Didn’t Know About All Foreclosure Proceedings

4 Things You Didn’t Know About All Foreclosure Proceedings

all foreclosure

UPDATED 4/13/21

While the real estate market is definitely doing a lot better than it was a few years ago, there are still a lot of foreclosures that are reported every year. It’s not always just that the tenants can no longer afford the property; boundary disputes, building code violations, misunderstanding real estate contracts and others are common reasons that mortgages stop getting paid and the foreclosure process begins to set in. All of these reasons should have an attorney present to deal with them but many times people do not realize that they need the help of a lawyer until it is too late. Unless you have gone through a foreclosure, there may be a few things that you didn’t know about it.

Any items you leave behind are included in the foreclosure. If you do not pack up your own house and take everything with you, whatever is left behind is fair game for anyone else. Often times, banks will take whatever is left in the house and set it outside for a period of 24 hours for passers by and neighbors to go through. Whatever is left after that will be put back in the house and companies will then offer bids to clean it out.

The bank actually loses money when you foreclose. Many people think that their banks don’t want to help them during difficult times because they make money on foreclosures. The opposite is actually true. Whether it’s because of boundary disputes or other misunderstandings, a bank makes more money when you are paying your mortgage with interest. They actually do want you to stay in the home because of this. As well as not being paid the mortgage payment or interest, when a home goes through foreclosure, the bank always ha to pay any fees and costs associated with the foreclosure.

You will still be responsible for whatever the foreclosure doesn’t cover. Many times there’s are HELOCs and second mortgages that are associated with a property and if the foreclosure doesn’t cover those, then you will still have to pay those off yourself. If your issue is boundary disputes then you will need your lawyer to negotiate in order to find out what exactly you are responsible for. If the home is worth less than it was when purchased and if you have don’t have insurance to cover, you will be responsible for the remainder by law.

Foreclosure can affect every area of your life. If you want to buy another house or even a car or any kind of large purchase at all, having a foreclosure on your record will make it very difficult to do that, if not impossible. You will have to start from the bottom in order to build your credit back up to good standing again. This could take many years to do after a foreclosure. Foreclosures can even affect people’s health and well being. Anxiety, depression and even suicide has been linked to foreclosure.

Is there an alternative to foreclosure in real estate? When homeowners are unable to pay their mortgage loans and end up defaulting on that loan that they used to purchase their home, the home will likely enter into what is known as foreclosure. This is when the bank or the lender who gave the loan essentially reclaims the home and forced the owner to move out. The lender will then attempt to sell the home to someone else in an attempt to get all or at least some of their money back. Many people look specifically for foreclosure homes when they are looking to buy a home as they are often cheaper. For those facing this unfortunate event, there is foreclosure help available but in many cases, the home does end being foreclosed upon and is put up for sale again. A simple online search for “active foreclosures near me” can reveal all foreclosure listings currently active in your area. If you are looking to buy and do not care about getting a home that has already been lived in, then checking some available foreclosure properties in your area can be a great place to get started.

If you think that you may be in danger of foreclosure you should contact an attorney immediately. They may be able to help you avoid foreclosure or at least direct your path to make sure that you do everything you can to help yourself. Never be afraid to contact an attorney whether the problem is simply boundary disputes or as big as impending foreclosure. Also, always be in close contact with your mortgage company. If you do not, they will assume that you do not care about your home and could hasten the proceedings. However, if they know the situation and are constantly hearing from you, there may be programs that they can enroll you in or halts that they can play on proceedings, depending on the situation. Avoiding your mortgage lender is the worst mistake you can make when you are going through difficulties. Keep in mind that it is in the lender’s best interest to help you, so any word they receive from you they can note as contact and attempt to pay which can end up slowing down any foreclosure proceedings that are in place. Even if you are unable to pay for one month, call them and tell them why and see what help is available.

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow by Email