Foreclosure is a
term that is familiar to a person who has taken loan from a bank. Although,
everyone is not familiar with all the details regarding the foreclosure
procedure. Only a foreclosure lawyer can tell you the details regarding
your loan agreement and how you can use it in your favour. Foreclosure is a
process in which the person or institute that loaned you the money can auction
the asset that you used as the collateral for the loan, in case you do not make
the payment to the lender. But there are strategies which can help you to stop
the auction and keep that asset. Generally, the person who takes the loan is
obliged to pay interest on the loan amount. So if you have taken a loan from a
bank, then you will have to pay that amount plus a simple interest amount.
If
you are unable to pay the set amount (that means you become the defaulter) then
the bank takes the possession of the asset (also known as the guarantee for the
loan) and can either hold a public auction to sell it or keep it with them and
use them in the future. Foreclosure attorney help you out in this
situation and help you to keep your asset with yourself. They can find the gaps
and outs from the agreement that you signed at the time of taking the loan. You
can also try to negotiate your payment amount ( less amount for a longer period
of time) or pay high interest over a long period of time.
Another option that
you can opt for is returning the property that you have taken loan for. Before
auctioning or seizing the asset, the lender has to send you a notice of default
and maybe some extended time period that he is willing to offer to make the
payment.
After the notice period is over, the lender can choose to go through
with the foreclosure. The lender can hold a public auction to sell the asset
and the highest bidder gets the asset. In case there is no bidder then the
lender can keep the asset with him and maybe auction it in future or use it
himself. You have to vacate the property after you didn’t make the payment in
the notice period. In case you do not vacate the property, then the lender can
file a lawsuit against you. Anytime in this process of foreclosure you can pay
off your loan and keep your asset. Foreclosure lawyers are there to help
you in this process and help you to keep your asset because we know the value
that asset.
