There are different reasons people have to foreclose. In some instances, there may be a contractor who did not get paid for his services; lenders may have loaned money and did not get paid; or people who owner finance properties may have to foreclose. Whatever the case may be, when someone does not get paid according to the promissory note that was signed, foreclosure is the manner in which a lender can recoup their money.
From the borrower’s perspective, you may have a borrower who is having trouble either making their payments on time, or not making their payments at all. Taxes may not have been paid when they became due and a tax loan was obtained to pay them. Whatever the case may be, when someone does not do what they are supposed to under the loan documents, the lender will eventually begin the foreclosure process. When this happens, it is always best to seek assistance immediately and not wait until your property is to be sold in the next couple of days.
Although foreclosure is not the end of the world, it is usually something someone would not want on their record. It damages your reputation and credit and counts against you if you attempt to purchase another property. If one can avoid foreclosure, by all means, avoid it. Here are a few things you can attempt to avoid foreclosure.
- Loan modification
- Sale of property
- Court Action
If a foreclosure is imminent yet you want to keep your property, then one of your remaining choices would be to stop the foreclosure. This would require court action, which includes filing for a TRO (temporary restraining order). The TRO would give you additional time to talk to the lender and maybe give you the additional time needed to obtain funds to pay off the lender.
If a lender is not getting paid according to the note, or the borrower is in default for some other reason, and foreclosure is necessary, then the Law Office of Ramon Vega III, PLLC can discuss the foreclosure process with the client, which includes:
- Initially reviewing your file or loan documentation.
- Determining whether or not you have a proper lien on the property you are foreclosing upon.
- Preparing and mailing a demand for payment (and giving the borrower the opportunity to cure defaults) and notice of intent to accelerate (and post property for foreclosure sale).
- Preparing statutory certified mail notice of foreclosure sale to the borrower and all other obligors.
- Preparing a notice of foreclosure sale required for public posting and filing the notice with the county clerk.
- Ordering a title report before foreclosure to see if anything is affecting title (highly recommended). This is an additional expense client must pay before ordering the title report.
- Obtain a title search to find and IRS liens and give appropriate advance notice to the IRS of the sale.
- Conducting the foreclosure sale.
- Preparing and recording the foreclosure deed.
Whether you owe money or are owed money, the Law Office of Ramon Vega III, PLLC can help.