Borrowers who fall behind on their mortgage payments typically go through a number of procedures before facing foreclosure. Foreclosure occurs when you break your repayment agreement with your lender and fail to negotiate alternative repayment arrangements, such as a loan modification.
The promissory note you signed at closing as a condition of taking out a mortgage contains details on the repayment agreements. These agreements may differ depending on the lender and the jurisdiction. Refer to your mortgage agreement for specific rules that govern your mortgage.
Typically, you are not required to leave until the foreclosure process is completed, which can take several months or up to a year or more. However, once your house is sold, you must vacate the premises. You may have some time following the selling date to live in the home, although this varies by state. If you continue to occupy the premises after your legal rights have expired, the homeowner or lender will initiate a formal eviction procedure.
According to FICO, foreclosure is a very negative credit event that can reduce your credit score by 100 points or more. Furthermore, it remains on your credit report for seven years. Your credit score will be negatively impacted prior to the foreclosure process because missed payments are at the top of the list of all adverse events.
The fact that you may lose your house is one of the most distressing events you can have. However, you don’t have to face it alone. Contact Alpha mortgages House Corporation in Surrey BC to get free, expert assistance in avoiding foreclosure. Our experts can guide you on the best financial solutions available.
Feel free to contact us at 6045019837