How to Avoid Foreclosure- Consumer Proponents

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What is a Foreclosure how to avoid a
Foreclosure?
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What is a Foreclosure?

• It is a legal process in which a lender(in most
  cases the bank) attempts to recover the amount of
  the loan from the borrower by forcing the sale of
  the asset used as a collateral or security for
  the loan.
• The is usually done when the borrower fails to
  repay the installments of the loan amount to the
  bank.
• The asset is then auctioned by the lender in
  order to recover the amount of the loan.
• The auction is conducted by the lender either by
  the order of the court or by the provisions of
  the law.

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Types of Foreclosure

• There are 3 basic types of foreclosures. They
  are
• Judicial
• Nonjudicial
• Strict

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Judicial

• Judicial Foreclosure is also called as
  Foreclosure by Judicial Sale.
• It involves the sale of a property by a lender
  under the provisions of a judicial court.
• The lender initiates a judicial foreclosure by
  filing a lawsuit against the borrower.
• A judicial decision is announced after the
  exchange of pleadings at a state or local court
  in the US. In some rather rare instances,
  foreclosures are filed in US federal courts.

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Nonjudicial

• It is also known as foreclosure by power of sale.
• In this, the borrower gives the power to sell the
  asset given as collateral to the lender while
  borrowing the loan.
• Here, in case of a default of loan repayment, the
  lender has the power to sell the asset or
  property without moving to the court.
• It exists in some US states, like California and T
  exas.

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Strict

• In Strict Foreclosure, which is available in a
  few states including Connecticut, New Hampshire
  and Vermont, if the lender wins the court case,
  the court orders the defaulted borrower to pay
  the borrowed amount within a specified period of
  time.
• Should the borrower fail to do so, the lender
  gains the title to the property with no
  obligation to sell it. 

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Steps in the Foreclosure Process

• NOTICE OF DEFAULT Here a notice is issued by the
  lender to the defaulter.
• LEGAL FILING Here, if the defaulter fails to
  clear the dues within the given deadlines, then
  the borrower movers to file a legal case against
  him.
• NOTICE OF FORECLOSURE SALE The legal body sends
  a notice for the foreclosure to the defaulter.
• PUBLIC SALE The asset is sold in a public
  auction by the lender in order to recover the
  amount of the loan.

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Why do sellers go into foreclosure?
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Tips to Avoid Foreclosure

• Don't ignore the problem.
• Contact your lender as soon as you realize that
  you have a problem.
• Open and respond to all mail from your lender.
• Know your mortgage rights.
• Understand foreclosure prevention options.
• Contact a HUD-approved housing counselor.
• Prioritize your spending.
• Take help of foreclosure prevention companies. 

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How does consumer proponents help in avoiding a
foreclosure?

• If youre facing foreclosure, notice for a sale
  or auction date or you just cant afford your
  payments our expert underwriters will force your
  lender to modify your mortgage.
• Talk to us first and go over your foreclosure
  options for your defense and get fast, proven
  help so you can successfully stop a foreclosure
  sale date and continue to stay in your home.
• We Can
•  Freeze Foreclosure Sale Date
• Reduce PI Payments 
• Reduce Your Loan Amount 
• Keep The Bank Off Your Back! 
• Permanently Stop Foreclosure

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