Foreclosure: Mortgage and Real Estate Market

3445 WordsOct 8, 201214 Pages
Foreclosure – Individual Crisis That Depresses the Whole Economy Foreclosure – Individual Crisis That Depresses the Whole Economy Introduction 1. Foreclosure: past, reality or future. 2. Awareness can help. 3. Impact of foreclosure and lack of knowledge. Body 1. Process and statistic of Foreclosure A. Understanding what foreclosure is. B. Process of foreclosure. C. Different statistics between the states. D. Foreclosure case. 2. Reasons behinds foreclosure in different states E. Leading reasons for foreclosure in the states with the highest instances. F. Reasons for the low rate of foreclosure in the states with low occurrences. 3. Foreclosure effects on…show more content…
In general, the government-insured, or purchased loans, involve extensive relief programs and procedures for borrowers in default. Private lenders, most of the time, are not as helpful, and make decisions a lot faster. Understanding which mortgage and insurance is signed at the time of buying the house is a very important to understand if default occurred, how to react and what actions need to be taken. Foreclosure Process The foreclosure process is different in every state. In general, if a borrower falls behind on payments, the lender may choose to foreclose the mortgage. The total amount of the loan becomes immediately due. The process can start as soon as borrower misses a single payment. However, depending on the lender and the state, most lenders will wait up to 4 months before they determine that foreclosure is necessary. One of the options is: any time after more than 60 days overdue, the lender can send a letter called a Notice to Accelerate. Paying the past due amount plus penalties can stop the process at this point. Lenders are likely to also send out a threatening letter warning the borrower that failure to pay by a specific date will result in the acceleration of the due date so that the full balance becomes due and payable. Next, the lender will hire a foreclosure attorney, who will send a Demand Letter that formally states that the debtor must immediately bring the loan to a current
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