subject: About Home Foreclosures [print this page] When it comes to foreclosure a lot of people have different notions about the entire process of foreclosure, it is therefore essential that one gathers all the relevant and authentic information relating to foreclosure. Firstly everyone needs to know that foreclosure is basically a situation where the borrower losses his right of redeeming the mortgaged property due to the courts order once the lender initiates a legal proceeding against. Once the legal proceedings have been started by the mortgagor and have been approved by the court then the mortgagee cannot get the rights to the property even if he/she becomes in a position to pay the entire loan and interest amount. The process of foreclosure is a complicated process and requires professional services of a lawyer.
Many people believe in the notion that the banks and lenders are keen to initiate the process of foreclosure; however this is not a fact. The whole process of foreclosure is not only expensive but is also tedious for both the parties and therefore the lenders treat foreclosure as the last resort. More often than not a lender initiates the foreclosure only if all other means of recovering the money have failed and the borrower happens to declare bankruptcy. Moreover even if the borrower is in a financial problem even then there are methods which help the borrower to stop the foreclosure and be able to pick up a loan (of course at a higher rate than normal) and be able to save the mortgaged property.
There have been many cases where the borrower and lender have come to a mutual agreement and have devised a payment method which was beneficial to both the parties. There are cases where the lender and borrower cannot come to an agreement and in this case the borrower can take the help of a foreclosure consultant to get a professional negotiation on the foreclosure.
The best way to avoid getting into the whole process of foreclosure is to ensure you make your payments on time, however if you can foresee that you are about to have a financially tight situation it is better to talk to the lender before hand and come to an agreement which would be mutually beneficial. The mutually beneficial deal could be a fresh payment schemes wherein the lender may charge a higher rate if interest however would give the borrower a longer duration of time to repay the loan.
The reason why people try to settle things out of the court is that the court proceedings are costly for both parties and while the amount of money being spend on the legal proceedings are a pain for the lender, the after effects of being subject to foreclosure are bad for the borrower. Often people who have gone through foreclosure get loans (if any) in the future at a very high interest rate. It is for these reasons that people always prefer to settle things out of the court and be in accommodating to each other.
