It is when you borrow money to buy a house and you fail to make your loan payments on time, the lender can simply take back your house. Yes, they can sell it to repay the loan. This legal process of taking back the house and selling the property is called foreclosure. As a matter of fact, your house can be the subject to foreclosure almost any time you take out the loan and fail to repay the mortgage amount. There are two types of Massachusetts foreclosure – Mortgage loan foreclosure and Equity loan foreclosure.
So what’s this mortgage loan foreclosure all about? Typically when you borrow money for buying a house, you sign a mortgage. This actually gives the lender the legal claim to your house once you fail to follow the legal agreement. So what happens to your property if you fail to make the mortgage payments on time? The company that loaned you the money sells your house at public auction in order to repay the loan. When the house is sold at foreclosure, the lender who holds the primary loan gets the first payment.
When your house is worth more than the amount you owe on it, lender might let you borrow money based on the equity you have in your house. And in case you fail to make your equity loan payments on time, the lender can foreclose on your house for repaying the loan. The equity loan lender is usually second or third in line to get the payment after the foreclosure sale.
Foreclosure prevention counseling: Must step
Foreclosure prevention counseling is basically the free service for Massachusetts homeowners who are in trouble and facing the Boston Foreclosure. Basically, the foreclosure prevention counselors review your mortgage and finances with you, discuss your options, and help you find a solution that is best for you.
Foreclosure counseling: Yes, there are some benefits
That’s right; the sheer foreclosure counseling programs offer the following services to homeowners, those who are at the risk of foreclosure:
Negotiation services: The counselors will talk to the current lender for trying to work out a repayment plan which you can actually afford. The Massachusetts Foreclosure Lawyer asks your lender for lowering the mortgage interest rate, forgiving the part of the loan, or giving you more years to repay the loan.
Refinancing services: The foreclosure counselors will try finding new mortgage loan for you, which fits your budget. They do this to help you to refinance the loan thus keeping your house.
Legal assistance: What happens when your lender breaks law and violates your legal rights? Massachusetts Foreclosure Attorney and the counselor will get legal assistance for you.
Financial counseling: The foreclosure counselors will help you budget your money in order to help you in making your mortgage payments on time, and also save for home repairs, utility bills, property taxes, and other home-related expenses.
What’s more? Massachusetts foreclosure counseling programs also outreaches for letting the low-income and elderly homeowners know where to go for help.
This content has been taken from: http://www.zimbio.com/Law+Cases/articles/vO8m6BWkOzi/Massachusetts+Foreclosure+Let+talk+prevention?add=True
