Homeowners Facing Foreclosure
If you miss mortgage payments, the loan provider that lent you money may sell your house to collect the cash you owe. This is foreclosure.
When you took out your loan, you participated in 2 contracts with the bank.
- One contract is the "note." The note says you guarantee to pay back the cash you obtained.
- The other agreement is the mortgage. The mortgage states you understand that the bank can take your house to pay the debt if you do not repay the money you owe.
The bank needs to follow foreclosure laws before they can take your home. They must tell you about the auction and reveal it in the paper before they foreclose. There are laws that give you time to discover a method to catch up on your missed out on payments or find another method to prevent foreclosure. If the bank does not follow the rules, they can not foreclose. It is essential to understand:
- What the bank has to do,
- When it needs to do these things, and
- How to know if the bank is following the rules.
Mortgage Holder
Mortgage Holder
The mortgage holder has the right to foreclose on your home if you do not make your payments. The mortgage holder can be a bank, a company, a trust, or a person that owns the mortgage.
Noteholder
The "noteholder" is the company that owns the right to collect your payments.
Servicer
The company that sends you notifications and expenses is usually the "Servicer" for the mortgage holder. The mortgage holder employs a servicer to gather payments, manage escrow payments, procedure loan adjustments, 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 business.
If you miss mortgage payments, the loan provider that lent you money may sell your house to collect the cash you owe. This is foreclosure.
When you took out your loan, you participated in 2 contracts with the bank.
- One contract is the "note." The note says you guarantee to pay back the cash you obtained.
- The other agreement is the mortgage. The mortgage states you understand that the bank can take your house to pay the debt if you do not repay the money you owe.
The bank needs to follow foreclosure laws before they can take your home. They must tell you about the auction and reveal it in the paper before they foreclose. There are laws that give you time to discover a method to catch up on your missed out on payments or find another method to prevent foreclosure. If the bank does not follow the rules, they can not foreclose. It is essential to understand:
- What the bank has to do,
- When it needs to do these things, and
- How to know if the bank is following the rules.
Mortgage Holder
Mortgage Holder
The mortgage holder has the right to foreclose on your home if you do not make your payments. The mortgage holder can be a bank, a company, a trust, or a person that owns the mortgage.
Noteholder
The "noteholder" is the company that owns the right to collect your payments.
Servicer
The company that sends you notifications and expenses is usually the "Servicer" for the mortgage holder. The mortgage holder employs a servicer to gather payments, manage escrow payments, procedure loan adjustments, 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 business.