Foreclosures and Repossession
Foreclosures and Repossession
Consumer debt is at an all-time high. What's more, record numbers of consumers are filing for bankruptcy.
Sometimes when money is borrowed, lenders will require that loans be secured. Subsequently, from time to time even with the best of intentions, the financial responsibility for payment on a secured loan cannot be met on time.
When this happens, foreclosure or repossession could become a necessary option in order for lenders to recoup their investment.
This means that if the loan is defaulted, or the borrowers stop repaying the loan, according to the Credit (Repossession) Act of 1997, the lender can foreclose on the loan or repossess the property placed as security against the loan and sell the property to recover the debt.
These secured loans include hire purchase deals (the security for the loan is the property that was bought with the loan) or personal loans secured by a possession that is already owned by the borrower.
Foreclosure is one of the most serious credit issues that lenders fear. Creditors treat this worse than tax liens, late child support payments, automobile repossessions, or in some cases, even bankruptcies.
Foreclosure
When lenders foreclose, it means that lenders have terminated mortgage contracts (usually real estate mortgages) because borrowers have defaulted on contracted repayments or in some way have breached the mortgage contracts.
This results in property that had been placed as security against loans becoming the possession of the lenders--repossession--allowing the lenders to sell the properties in order to recover the money they originally loaned.
A breach exists when borrowers fail to make repayments of principal and interest when such repayments are due; when mandatory insurance, taxes, or assessments are delinquent; if the balance of a note is due, failure to make the principal payment plus interest by the maturity date; or transferring the property without the lender's approval.
Because a foreclosure will stay on borrowers' credit files for a minimum of seven years and perhaps as long as 10 years, if borrowers fall behind on mortgage payment, they should make every effort to sell the house even if it has to be sold at a loss.
My firm offers highly personalized and communicative services to people struggling under the weight of overwhelming debt. We provide debt relief services through Chapter 7 bankruptcy, Chapter 13 bankruptcy and Chapter 11 bankruptcy. We also explore bankruptcy alternatives as needed and answer many questions about bankruptcy. Most importantly, we care about you. We understand that you deserve a fresh start and know how to save you from drowning in debt.
Bankruptcy Can Work for You
Our firm provides services to consumers and businesses alike that have fallen on hard financial times. For individuals, we offer Chapter 7 debt liquidation and Chapter 13 debt reorganization. For businesses, we offer Chapter 11 services, where you are able to maintain control of your business
Consumer debt is at an all-time high. What's more, record numbers of consumers are filing for bankruptcy.
Sometimes when money is borrowed, lenders will require that loans be secured. Subsequently, from time to time even with the best of intentions, the financial responsibility for payment on a secured loan cannot be met on time.
When this happens, foreclosure or repossession could become a necessary option in order for lenders to recoup their investment.
This means that if the loan is defaulted, or the borrowers stop repaying the loan, according to the Credit (Repossession) Act of 1997, the lender can foreclose on the loan or repossess the property placed as security against the loan and sell the property to recover the debt.
These secured loans include hire purchase deals (the security for the loan is the property that was bought with the loan) or personal loans secured by a possession that is already owned by the borrower.
Foreclosure is one of the most serious credit issues that lenders fear. Creditors treat this worse than tax liens, late child support payments, automobile repossessions, or in some cases, even bankruptcies.
Foreclosure
When lenders foreclose, it means that lenders have terminated mortgage contracts (usually real estate mortgages) because borrowers have defaulted on contracted repayments or in some way have breached the mortgage contracts.
This results in property that had been placed as security against loans becoming the possession of the lenders--repossession--allowing the lenders to sell the properties in order to recover the money they originally loaned.
A breach exists when borrowers fail to make repayments of principal and interest when such repayments are due; when mandatory insurance, taxes, or assessments are delinquent; if the balance of a note is due, failure to make the principal payment plus interest by the maturity date; or transferring the property without the lender's approval.
Because a foreclosure will stay on borrowers' credit files for a minimum of seven years and perhaps as long as 10 years, if borrowers fall behind on mortgage payment, they should make every effort to sell the house even if it has to be sold at a loss.
My firm offers highly personalized and communicative services to people struggling under the weight of overwhelming debt. We provide debt relief services through Chapter 7 bankruptcy, Chapter 13 bankruptcy and Chapter 11 bankruptcy. We also explore bankruptcy alternatives as needed and answer many questions about bankruptcy. Most importantly, we care about you. We understand that you deserve a fresh start and know how to save you from drowning in debt.
Bankruptcy Can Work for You
Our firm provides services to consumers and businesses alike that have fallen on hard financial times. For individuals, we offer Chapter 7 debt liquidation and Chapter 13 debt reorganization. For businesses, we offer Chapter 11 services, where you are able to maintain control of your business
Source...