Know Your Rights

Foreclosure Disclosure

Falling behind on your house payments can lead to foreclosure and your house will be sold by a state lender. It works differently state to state and may have occurred do to too much debt.

When a foreclosed property abandoned by the owner is known as a zombie house. A property the bank never finished the foreclosure proceedings.

There are two types of foreclosure proceedings, judicial and nonjudicial.

Judicial, where the lender files a lawsuit to foreclose, but depending on where you live it can be hard to fight. A lawsuit must be brought to get a foreclosure started. A summons is issued, which you may choose to contest.

A nonjudicial foreclosure proceeds outside court. Filing a lawsuit will get the judges attention. The borrower must provide proof to stop the proceedings.

A way to prevent a foreclosure is to apply for a loan modification, a change of terms of a borrowed loan. It allows the loan’s reinstatement resulting in payments one can afford. A borrower can only receive one within a 24 month period.

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