What is Foreclosure?

  • 07/09/2013
  • News

by: Joseph Gonzales 

Mortgage foreclosure is the legal right of a mortgage holder (lender) or third-party lien holder to gain ownership of the property and the right to sell the property if the property owner defaults. The lender may then use the proceeds from the sale to satisfy the balance of the mortgage. Typically, the lender can begin foreclosure any time after a default on the mortgage. Many homeowners believe that the only options available when facing foreclosure are giving up, payment of the mortgage or filing bankruptcy. 

One important thing to keep in mind during the stressful and frightening period while facing potential foreclosure, is that you do have options. Foreclosure is often avoidable even for homeowners for whom home ownership is no longer affordable or desirable. Additionally, there are options for unemployed homeowners and homeowners who owe more than their homes are worth.

These options include:  Foreclosure Defense, Loan Modification, Short Sales, Deed-in-Lieu of foreclosure, and “Cash for Keys.” 

Check back soon for more information on each of these options!