Are you a new investor? If all else fails, many homeowners in foreclosure or facing financial collapse are clearly insolvent right now (owing more than their assets are worth), so a Chapter 7 bankruptcy might be used to eliminate unsecured debt (such as what they owe the creditor discussed in this section) and allow them to keep their home.
The Guidelines on arrears and foreclosure establish requirements in terms of policies and procedures for the early detection and handling of payment difficulties including staff training, engagement with consumers, provision of information and assistance to consumers, resolution process and documentation of dealings with consumers and retention of records.
Should the mortgagor fail to do so, the mortgage holder gains the title to the property with no obligation to sell it. This type of foreclosure is generally available only when the value of the property is less than the debt (” under water “). Historically, strict foreclosure was the original method of foreclosure.
Don’t be surprised if none of the papers in a foreclosure lawsuit actually use the word “foreclosure.” Instead, the lawsuit papers will probably use the Latin words “scire facias sur mortgage” or “sci fa sur mortgage.” If the foreclosure is in Superior Court, the Sheriff will serve you with a “writ of scire facias” (sci.
The revised Opinion on Good Practices for Mortgage Creditworthiness Assessments and Arrears and Foreclosure, including expected mortgage payment difficulties, lists additional and non-binding good practices that the EBA has observed across Member States.