Foreclosure Process

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Foreclosure processes are the action taken when you became a defaulter after taking mortgage for your house.
Generally foreclosure process gets completed by the auction of the mortgaged house openly and with the eviction of the original house owner from the house.
This is a long process taking generally six months.
The foreclosure process is initiated when you fail to respond to the repeated notices from the mortgage company to repay your loan amount.
Generally the circumstances lead the borrower to default the mortgage monthly installments.
For a mortgage loan the rules are very strict and it is executed such that the lender doe not loose any amount and the interest there on.
The owner will not get any humanitarian considerations such as losing job, accidents or other types of inabilities.
Mortgage rules are very clear and it provides ample facilities to the lender to recover back the paid amount with interest.
If you make a one time default, then company will send you a notice detailing about the pending premium or EMI.
They will remind you to pay the due as early as possible and may give you a time line.
If you default again in the next month, the company will be issuing a legal notice asking you to pay the defaulted amounts, penal interests thereon, the legal and postal charges within a stipulated time.
This time may be 15 days to one month.
If you still do not respond to the notice by paying the amount and renewing the mortgage loan within the time period, they will initiate foreclosure process.
The Mortgage agency will be issuing another notice requesting you to payback full loan amount together with interests, legal charges, penal interests and other expenses within a short duration.
Once this period is expired without any action from the original owner, the company will publish a foreclosure notice in dailies, highlighting the various details of the property, amount availed, total amount due to the company and all relevant details.
The notice will fix a date for foreclosure and auction of the house.
During this time original owner has the right to get back his property by paying full amount due to the company with other expenses accrued by the company.
Any national can participate in the auction process.
Generally the auction amount will be more than the total amount due to the company plus other charges like taxes, registration fees and legal expenses.
Once the auction is finalized, the amount will be given in a priority order with taxes to the states coming first and the original owner coming last.
After paying all the dues, if any money is left in the auction amount, it will go to the owner.
Then there is a redemption period by which the original owner can claim back the property by paying suitable amount.
Foreclosure process ends with the eviction of the owner from the house legally by the new owner at the end of the redemption period.
The owner can discuss with the company or the new owner in redemption period and come out of the foreclosure process anytime if the owner is ready to pay the full amount at a time and close all activities regarding the mortgage loan.

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