Welcome to Foreclosure Guide
Fha Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Definition of Foreclosure on Default of Payment of Property Loans
from:Foreclosure is a legal term often on the minds of many American homeowners. The average American family works hard to afford a home in which their family can live comfortably. Most families do not have the cash up front to pay for their dream house in full. They will seek a loan from a financial lending institution such as a bank or a mortgage company to buy this home.
To secure the loan, these financial lending institutions must be certain that they will get back their money back. Since a good paying job does not guarantee that a loan of this magnitude will be paid back, they require what is known as collateral, an asset they can seize in lieu of payments if the loan is in default (no longer being paid back).
Normally the home that is being purchased with the loan is put up as collateral and if the mortgagor (person seeking the loan) does not pay back the loan to the mortgagee (money lender, borrower), the house goes into foreclosure. The money lending institution may obtain a court order to proceed with the foreclosure and repossess or seize the house in lieu of repayment of the loan.
In some instances the financial lending institution may attempt foreclosure on a home or other property, but if the borrower repays the loan, a court of equity may rule in favor of the borrower who at that point will be able to keep the home or property in question.
The contract between the financial lending company and the borrower is called a mortgage or deed of trust. When a contract has been entered, effectively the lending company has agreed to give the borrower a certain sum of money in which to purchase the said property. The borrower agrees to pay this money back (signs a promissory note). The contract will also stipulate that a lien will be placed on the property meaning that the financial lending company has a right to seize the property (repossess it) if the loan is not repaid in the time frame that is stipulated and according to the conditions set out in the contract.
The process of foreclosure is used in any contract whereby real estate, homes, farms, land, and other immovable property has been obtained through a mortgage, and the mortgage holder has defaulted on the payments.
Judicial Foreclosure is available in all the American states. When the borrower defaults on the loan, the property is sold. The proceeds from the sale of the property first goes to repay the balance on the existing loan, then to any other lien holders, and finally to the borrower if any proceeds are left over. All transactions are done legally through the court system.
Foreclosure by power of sale is sometimes added as a clause in the mortgage contract that defines the foreclosure procedure without court intervention. This procedure follows the same order as the Judicial Foreclosure however faster since the courts are not involved.
Fha Foreclosure News
Tighter FHA rules locking many entry-level buyers out of condos
Condo developer Jason Sherrill says he would prefer to hand keys for his new units to families, but tighter rules from the Federal Housing Administration have him selling to investors instead.
Read more...FHA New Foreclosures Jump as Modified Loans Default
The number of Federal Housing Administration-insured home loans entering foreclosure jumped in March after half the mortgages it modified to ease repayment terms were in default again a year or more later.
Read more...FHA Streamline Refinance Expert, Steve Hays, Launches New FHA Refinance Website
FHA streamline refinance expert, Steve Hays, is using his 20-year career as a mortgage expert to help homeowners struggling with their mortgage. The launch of http://www.fhaeasyrefi.com is designed as a first step resource to help homeowners meet the qualifications of the FHA streamline refinance program.Phoenix, AZ (PRWEB) May 18, 2012 FHA streamline refinance programs have been available to ...
Read more...How to Buy a Fixer-Upper With FHA 203(k) Financing
SANTA ANA, CA-- - Drive just about anywhere and you can find homes which would be great to own but plainly need repair and updating. The problem? Most mortgages help you buy a home but provide no funding ...
Read more...Foreclosure Stories: Is FHA no better than Fannie and Freddie?
Karen came into our offices recently with a story which is yet another sad reminder of how the government entities meant to encourage and protect home ownership in America are either looking the other way when it comes to enforcing the rules prohibiting the banks’ bad behavior or have simply just thrown in with the banks altogether. This time, it’s the Federal Housing Administration (FHA) which ...
Read more...