What Is A Bank Foreclosure And What To Do About It?
June 21, 2016
Banks are in lending money business and not in real estate business and the last thing they want is to end up owning another piece of real estate. Knowledge is one of your greatest allies in a bank foreclosure proceeding.
When you buy a home by borrowing money from a financial institution to buy real estate, you sign a legal contract called a mortgage. A mortgage contract obligates you to pay the lender on a certain day of the month until the loan is paid off. In addition to this obligation there are other terms expressed in the mortgage contract but the most serious breach of contract happens when the borrower does not pay the mortgage payment.
Then the financial institution is forced to begin the steps that can ultimately end with them obtaining the ownership of the real estate property. This procedure is commonly referred to as a bank foreclosure.
In many stories about this unpleasant legal procedure the financial institution is portrayed as a huge, heartless giant who is throwing out little old ladies in the street on Christmas eve.
The truth is that a bank foreclosure is necessary for the financial institution to maintain its integrity and to protect the interests of its investors, depositors, and employees. It is also important to remember that bank foreclosure is a long and tedious process that provides ample opportunities for borrowers to negotiate with the lenders to find alternative solutions to bank foreclosures.
For the most parts banks are in lending money business and not in real estate business and the last thing they want is to end up owning another piece of real estate. Educate yourself about how the foreclosure process works and, if you must, consider filing bankruptcy to stop the foreclosure.
Since 1982 Wessler Law Firm has been helping debtors, and creditors alike, navigate the foreclosure process. Please contact us today for a free, no obligation, consultation to see if you qualify for our assistance.
Our office is located at 1624 24th Avenue in Gulfport, Mississippi.
Disclaimer: This article is meant for reference only, and is not intended to be legal advice.
For legal counsel regarding your situation, please consult an attorney licensed in your state.