Foreclosure is never a pleasant experience, so it is important to know where you stand once your property has been foreclosed on. Once proceedings have been initiated, you will have a limited amount of time to catch up on your mortgage payments before your lender speeds up your payments to the point where they will accept nothing less than full payment if you intend to keep the mortgage. property. The amount of time you have for this will vary depending on the loan provider, but typically it won’t be more than a couple of months.
If you can’t meet these conditions on schedule, hope isn’t necessarily lost. There are a number of things you can do to try to keep possession of the property, especially if you have held a lien on the property.
Your rights
It is important to note that not all houses are eligible for redemption, so it is important to find out if you have the right before trying to exercise it.
To be eligible, your home must have been seized through a foreclosure court order, in which the lender files a foreclosure lawsuit in court. This process usually takes longer than other types of foreclosure, often taking up to a year before the lender has undisputed control of the property. This gives him a time frame in which he can try to buy the house back before it goes up for auction.
time frame
As mentioned, a judicial foreclosure will often take a year to complete, which usually means you have about that amount of time to raise the funds needed to buy your home back. However, this is not guaranteed and there will be cases where you will have much less time to achieve the same result.
This is particularly the case if the lending company puts the house up for auction quickly and finds a buyer who will pay full asking price for the property. In these cases, you will only have about three months to match the offer and buy the house back. After this period, you lose the right to buy your home.
The price
The price you will pay to redeem your home will not necessarily be the amount you owed to the lender at the time of foreclosure. In fact, he will often find that he ends up paying more to buy the property than he would if he had kept up the mortgage payments.
In most cases, the amount you pay will be equal to the amount the lender would ask if the property were put up for auction, plus any associated interest charges. In addition, you will generally be required to pay the landlord for any repair work done in addition to taxes and insurance for the period he owned the home. In addition, he will also need to pay any subordinate liens attached to the property before he can buy back his home.