You ask yourself this question and maybe, just maybe there is some light at the end of the tunnel. If the homeowner successfully makes the monthly payments for that time period, the trial mod can be converted into a permanent modification of the loan. If a participant at the foreclosure auction placed a bid and won, the proceeds of the sale would be distributed like any other foreclosure, regardless of which mortgage company actually began the foreclosure process in the courts.
Some states have what’s called right of redemption,” which means a homeowner who has been foreclosed on has a period of time to redeem or buy back the property. If you make your mortgage payment you will not be in danger of losing your house. A quit claim deed is sometimes used to clean up questions about title to land as part of the foreclosure process.
This time is required for research of the recorded documents, ascertaining the amount of the redemption payment, and preparation of the certificate. When that happens, all of the proceeds from the sale go to the lender and the sale cannot happen unless the lender approves it. A short sale is usually preferable for both the homeowner and the lender.
Now, what has happened to poor little old me who bought the house for $175,000, refinanced for $225,000 (still owe that much) but now that house is only worth what the short sales are paying. If borrowers need extra time, they can challenge the process in court.
You’ll get access to the largest selection of foreclosures , foreclosed homes for sale, MLS listings , auctions and bank-owned homes. If the lender takes the property, it could be sold in a private sale at a later date. 2. The bank may put the missed payments on the back-end of the mortgage.