There are two more negative resolutions:
1. Deed-in-lieu: the lender may accept title to the property as settlement for the debt (voluntary foreclosure)
2. Do nothing, let the bank foreclose, loose your home, ruin your credit and experience eviction
4 stages that a homeowner facing foreclosure will go through.
1. Denial-think foreclosure cannot happen to them 2. Realization- knowing it really could happen. 3. Procrastination- They may think they have time until the actual auction date so they may waste valuable time. 4. Panic- Time and other positive resolution options are lost, they have not accomplished a positive resolution and now they are searching for one.
Foreclosure types: Non-Judicial Foreclosure
• Processed without courts
• Default letter sent to borrower
• Notice of Default recorded with county
• Notice of sale
• Auctioned at sale
• Processed through the courts
• Lender files a complaint stating why the default should allow the lender to foreclose and take the property given as security for the loan
• Records a notice of Lis Pendens
• Homeowner served notice of the complaint
• Court hearing. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process.
• Judgment entered, a writ will be issued by the court authorizing a sheriff's sale.
• The sheriff's sale is an public auction, open to anyone, and is held in a public place, either in front of the courthouse steps or in front of the property being auctioned.
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