Homeowners Facing Foreclosure
If you miss mortgage payments, the loan provider that lent you money might offer your home to collect the cash you owe. This is foreclosure.
When you got your loan, you participated in 2 contracts with the bank.
- One agreement is the "note." The note states you guarantee to pay back the cash you borrowed.
- The other agreement is the mortgage. The mortgage states you understand that the bank can take your home to pay the debt if you do not pay back the money you owe.
The bank must follow foreclosure laws before they can take your home. They must tell you about the auction and reveal it in the newspaper before they foreclose. There are laws that provide you time to find a method to catch up on your missed out on payments or discover another method to avoid foreclosure. If the bank does not follow the guidelines, they can not foreclose. It is very important to know:
- What the bank has to do,
- When it needs to do these things, and
- How to understand if the bank is following the rules.
Mortgage Holder
Mortgage Holder
The mortgage holder can foreclose on your house if you do not make your payments. The mortgage holder can be a bank, a company, a trust, or an individual that owns the mortgage.
Noteholder
The "noteholder" is the company that owns the right to gather your payments.
Servicer
The business that sends you notifications and expenses is generally the "Servicer" for the mortgage holder. The mortgage holder works with a servicer to gather payments, manage escrow payments, procedure loan modifications, and communicate with you about the loan.
Sometimes the mortgage holder, noteholder and servicer are all the exact same company. Sometimes they are three various companies.
If you miss mortgage payments, the loan provider that lent you money might offer your home to collect the cash you owe. This is foreclosure.
When you got your loan, you participated in 2 contracts with the bank.
- One agreement is the "note." The note states you guarantee to pay back the cash you borrowed.
- The other agreement is the mortgage. The mortgage states you understand that the bank can take your home to pay the debt if you do not pay back the money you owe.
The bank must follow foreclosure laws before they can take your home. They must tell you about the auction and reveal it in the newspaper before they foreclose. There are laws that provide you time to find a method to catch up on your missed out on payments or discover another method to avoid foreclosure. If the bank does not follow the guidelines, they can not foreclose. It is very important to know:
- What the bank has to do,
- When it needs to do these things, and
- How to understand if the bank is following the rules.
Mortgage Holder
Mortgage Holder
The mortgage holder can foreclose on your house if you do not make your payments. The mortgage holder can be a bank, a company, a trust, or an individual that owns the mortgage.
Noteholder
The "noteholder" is the company that owns the right to gather your payments.
Servicer
The business that sends you notifications and expenses is generally the "Servicer" for the mortgage holder. The mortgage holder works with a servicer to gather payments, manage escrow payments, procedure loan modifications, and communicate with you about the loan.
Sometimes the mortgage holder, noteholder and servicer are all the exact same company. Sometimes they are three various companies.