Can A Mortgage Default Send Me Into Debt?
Can A Mortgage Default Send Me Into Debt? Table of Contents If you’re facing a mortgage default or are having difficulties making your repayments on
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If you’re going through a foreclosure, you will be concerned about many things. No doubt, one will be if you can stop your foreclosure by paying back the past amount is due. In most cases, it could be possible for you to pay off any past amount owing, and to stop the foreclosure process.
You might find that your lender has late fees that could increase the overall amount that you owe. However, if you are in the position to be able to, repaying the overdue amount on your mortgage could be a good option if you are keen to avoid foreclosure on your home.
Read on to find out more about repaying your loan to stop your foreclosure from happening.
When you’re approved for a home loan, your home is held by your lender as security in case you default on your loan. This means that your lender is able to repossess and sell your home if you fail to make the repayments you agreed to in your loan contract. Foreclosure refers to when a lender takes possession and sells a property after the homeowner fails to make their loan repayments.
Generally, your lender will need to send you a default notice before they begin foreclosing. You will then receive a summons, and then a court order before your home can be repossessed. Receiving a summons means that you will receive a notice explaining you have at least 30 days to repay your missed repayments, as well as the regular repayment on your mortgage. If you receive a summons, you might be given a certain number of days to either file a defence or go to court to argue your case. If you choose not to respond to your summons, your lender can then begin legal action to foreclose.
Once your lender has been granted a court order to repossess your home, you will likely receive a Notice to Vacate. This will give you a certain amount of time to vacate your home before your lender repossesses it and changes the locks. Usually, properties that have been foreclosed are either sold at auction, or sold directly by the lender.
It might be possible for you to pay back any owing amount of outstanding debt to stop foreclosure from happening to you, although this will depend on how far your foreclosure has progressed.
Depending on your lender, you might be able to repay the total amount owing in one lump sum instead of making instalments, which may help to stop the foreclosure process from moving forward. You may also find that you have fees mounting for your overdue repayments, which will need to be paid with your overdue amount. Some lenders might charge you late and overdue fees, where some may not.
SR & Associates have over 40 years of experience and have successfully helped 1,000’s of people find relief from bankruptcy and debt.
We’re here to advocate on our clients’ behalf with banks and creditors to stop home repossession. We can also help those being harassed by creditors and debt collectors find relief.
We provide support services to those who need confidential support, expert debt guidance and a personalised solution to their repossession of their property and debt issues.
We don’t have any hidden fees, so you can set your mind at ease. You won’t find any nasty surprises from us in the mail. In addition to helping you to with your bankruptcy, we can also assist you in finding a solution to your mortgage issues. If you need help and support, call today for your free consultation.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
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