You can make use of foreclosure bailout loan to save your home from getting foreclosed. The holder of a trust deed can foreclose without going to court, too, through a foreclosure by “advertisement and sale” or non-judicial foreclosure. In this case, the court overseeing the foreclosure process may enter a deficiency judgment against the mortgagor.
For most servicers, if your application is complete and received at least 37 days before a scheduled sale, the lender must stop all foreclosure activities. However, the secret to obtaining the help you need is to prepare a repayment plan prior to calling your loan officer.
Because the pool of buyers who can afford to pay cash on the spot for a house is limited, many lenders make an agreement with the borrower (called a deed in lieu of foreclosure ) to take the property back. It all starts when the homeowner â€” the borrower â€” fails to make timely mortgage payments.
Homeowners may find out that they were served incorrectly and have the deficiency judgment overturned, which would cost the lender even more money in legal fees to try and prove that services was made. Deficiency judgmentâ€”The amount of money still due to a creditor on a defaulted loan after a home is sold at auction or sheriff’s sale, where the money raised at the sale does not fully cover the amount owed.
If the court grants a deficiency judgment against you, then you would have an obligation to pay the amount of the judgment to the lender. He is simply in the position of a mortgagee who has a right of entry for foreclosure in case of non-payment. Please Note: At any point during these proceedings, you may be able to keep your home if you pay off the loan and all foreclosure proceeding costs accrued.