Loosing a home due to non payment to the mortgage company is becoming extremely common due to the current economy. Often times after the first payment is missed the process to take back the property will begin. There are many steps in process of an Arizona foreclosure; however, being evicted from the property can happen quickly and unexpectedly for many.
The law pertaining to foreclosures includes the use of judicial or non judicial processes. When a judicial process is used there will be a lawsuit filed for the purpose of getting a court order to proceed with a foreclosure. This is used if there is not a power of sale included in the deed. Once the court has made its decision the home will be sold at auction.
If there is a clause pertaining to the power of sale the typical route will be one of a non judicial route. The clause is one that has been included in the deed authorizing the sale should a default occur in order to pay the balance owed. This is a consideration to research should you be considering the effort to prevent foreclosure.
A promissory note is a document signed by the buyer in the sale of most properties. The document is simply saying that the purchaser is agreeing to the repayment of any and all money borrowed for the purpose of property purchase. The deed of trust is a secondary document many have signed stating the purchased property is the collateral for the property loan.
What all of this means when broke down is directed towards a trustee. With the trustee being the lender or any affiliate of the lender with the legal authority to put the home up for sell as a means to recoup monies from the property. The trustee will have any and all legal rights to the selling of the property without a court order.
The entire process could take several months or it could occur rather quickly. There are initial responses to alert the owner they property is at risk of loss. After the first payment is missed the lender will call and send letters requesting payment. If no response is received the lender will issue a notice of default, both notices are already affecting your credit score. The final process will be a request by the bank to the lender to sell the property, normally through auction.
If the home has not been sold in auction, the bank takes possession and will the property will be classified as REO. Real estate owned is a department at banks for all properties they have possession of. The banks are losing money the longer they have possession of these properties are anxious to sell them.
When faced with an Arizona foreclosure it is necessary to be aware of the after effects. Should you want to purchase another home, or rent another place to live, it may be difficult due to the credit report. When a bankruptcy or foreclose shows up in your credit score or report, it becomes extremely difficult to rebuild it. In some situations the foreclosure can be prevented. It is important to do your homework and research any and all possible ways to prevent it. Having a bad credit report can make it impossible to get housing credit for up to seven years.
The law pertaining to foreclosures includes the use of judicial or non judicial processes. When a judicial process is used there will be a lawsuit filed for the purpose of getting a court order to proceed with a foreclosure. This is used if there is not a power of sale included in the deed. Once the court has made its decision the home will be sold at auction.
If there is a clause pertaining to the power of sale the typical route will be one of a non judicial route. The clause is one that has been included in the deed authorizing the sale should a default occur in order to pay the balance owed. This is a consideration to research should you be considering the effort to prevent foreclosure.
A promissory note is a document signed by the buyer in the sale of most properties. The document is simply saying that the purchaser is agreeing to the repayment of any and all money borrowed for the purpose of property purchase. The deed of trust is a secondary document many have signed stating the purchased property is the collateral for the property loan.
What all of this means when broke down is directed towards a trustee. With the trustee being the lender or any affiliate of the lender with the legal authority to put the home up for sell as a means to recoup monies from the property. The trustee will have any and all legal rights to the selling of the property without a court order.
The entire process could take several months or it could occur rather quickly. There are initial responses to alert the owner they property is at risk of loss. After the first payment is missed the lender will call and send letters requesting payment. If no response is received the lender will issue a notice of default, both notices are already affecting your credit score. The final process will be a request by the bank to the lender to sell the property, normally through auction.
If the home has not been sold in auction, the bank takes possession and will the property will be classified as REO. Real estate owned is a department at banks for all properties they have possession of. The banks are losing money the longer they have possession of these properties are anxious to sell them.
When faced with an Arizona foreclosure it is necessary to be aware of the after effects. Should you want to purchase another home, or rent another place to live, it may be difficult due to the credit report. When a bankruptcy or foreclose shows up in your credit score or report, it becomes extremely difficult to rebuild it. In some situations the foreclosure can be prevented. It is important to do your homework and research any and all possible ways to prevent it. Having a bad credit report can make it impossible to get housing credit for up to seven years.
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