As defined in our commonly asked terms Foreclosure is when you lose title to a real state property.
Foreclosure can be a result of a default on a mortgage loan, a tax lien, a condominium association lien, and other circumstances.
In other words if you miss your mortgage payments the bank can do what is called to accelerate your mortgages loan, and require you to pay the balance in full, if you cannot they could start foreclosure proceeding and take away your property.
You should do everything possible to avoid a foreclosure on your property. Not only you loose your property, but it lowers significantly your credit score.
We created an entirepage for this subject because of its importance, and the solution might be short and seem simple but many times it works, and you can avoid paying companies what you may be able to do by yourself:
In general, and depending on who is trying to foreclose you can almost always set up a payment arrangement to avoid it.
If it is a mortgage loan, they usually have a department you can talk to and avoid foreclosure. For many lenders it is an inconvenience to have to foreclose on your property, and they are willing to “forgive” one or two payments. Please, make sure you do this in advance, and do not miss mortgage payments without first contacting your mortgage loan bank. What they might agree to is that those two payments you miss you will agree to pay them at the end of the loan. It is basically extending your loan.
A similar process could be done with other entities that might try to foreclosure. And the advice is also similar:
Keep communication open with your lender. Return their calls. Make sure they have your valid contact information.
A foreclosure is something you should avoid under all circumstances.
If you have a question about your specific situation please request a Free Analysis.