Date Posted: 11/13/2012 6:15:21 AM
Posted By: jwangari Membership Level: Bronze Total Points: 36
Home foreclosure is rapidly becoming a very common experience for many home owners who are still paying their mortgage payments. This is due to the current monetary crisis in most economies. It is very important for mortgage payers to be aware of what happens in foreclosure and the measures that can be taken to suffer minimal loss.Laws on foreclosure vary from state to state. For most states a notice is given, usually a few months before foreclosure. A defaulter is given a chance to pay back the amount before the expiry of the period. If the outstanding amount is so great that he cannot pay it back, he should start looking for a cheaper house or find other sources of income. At the expiry of the period, the bank may send their agents to collect valuable items from the house such as furniture and electronics that will be sold during an auction to cover the outstanding amount.Some banks also offer a redemption period. This is a period after the expiry of the notice that a defaulter is given to pay back the balance. He may still stay in the house until he pays the amount or the period ends, whichever comes first. Agents will then coming knocking at ones door to get all the valuables in the house.Not only does one lose a home during foreclosure, but his creditworthiness is also put on the line. One should also take the time and find out what would happen to ones credit after foreclosure. Potential lenders may perceive some risk if they discover that one has defaulted on a mortgage. It can be very serious for the first months after foreclosure. However, one may rebuild his credit report by ensuring that all bills are fully paid on time. Potential lenders may reconsider if they see that one is doing his best to pay his bills.
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