What is a Foreclosure?
By definition, a foreclosure is a legal course of action in which a mortgagee, often the financial institution that extended the loan to the borrower, relinquishes the mortgagor’s right of redemption via a court order. Because of the values of homes, it is difficult for the average individual to provide the cost of a home outright, consequently the need to apply for a loan from a lender (bank). edges, and other lending institutions have a number of requirements that a borrower must meet in order to be approved such as having to come to the table with money up front.
In order to protect their assets, the money that they have loaned to a borrower so that they can buy a home, edges require contracts that give them security interest over the character. Security interest is a legal agreement over assets in order to ensure that certain obligations are met by the borrower. In the example of purchasing a home, edges have legal authority over the home – a security interest – in the event that a borrower fails to meet their obligation to pay their debt.
edges will do everything in their strength to prequalify borrowers and will avoid those that they label “high-risk” borrowers and based on a number of metrics, will extend loans in varying degrees to those that are determined to be less-of-a-risk. It’s unfortunate that, in light of all that they do to prequalify possible borrower’s, some will nevertheless default on their loans. in spite of of the reason for non-payment, it is important to understand that if you’re already in foreclosure on your home, in reality, the bank does NOT want to take your home from you, they merely want the money that is owed to them. The foreclosure course of action is generally a long one and you will not have to move out closest and in most situations, there is nevertheless time for you to make payment arrangements with the bank and save your home.
If you’re under the threat of foreclosure with your home and you want to save your house, it’s important to learn as much as you can about the foreclosure course of action, what you need to do and how to do it. In most situations, edges are more than willing to work with borrowers that have fallen on hard times, but that isn’t to say that this is the case with all of them. If knowledge is strength, then learning as much as you can might go a long way to helping you save your home.