What is a mortgage transaction?
A mortgage transaction occurs when one is unable to pay the entire amount while buying a house and requires a loan to make the rest of the payment. DC Fawcett A mortgage is a legal document where the property is held for security. Borrower and lender are the two persons involved in the transaction.
A legal agreement is signed between the lender and borrower stating that he/she is in debt and responsible to pay the amount within the stipulated time. Failing to do so, the lender gets the property until the borrower pays the rest of the amount. The legal agreement is called promissory note.
What is a foreclosure?
Foreclosure is a legal process where one loses his/her home due to nonpayment of mortgages. It is applicable when the borrower does not pay his installment for 3 months. It is valid up to 10 years of time period which makes the condition worse for the future lenders to select him/her as the borrower. It is a seriously depressing issue when one loses his/her home through this process, thus steps must be taken to prevent it from happening. If needed, the support can be taken from reliable agencies to solve the issue.
Causes of foreclosure:
*loss of job
Procedure of foreclosure:
The lender should send a prior notice (i.e. 30 days before) to the borrower stating that the payment should be made immediately which is due; else the property will be transferred in the lender’s name.
There are two types of foreclosure namely judicial and non judicial
Judicial foreclosure is entirely supervised by court; they send a legal notice to the borrower that payment has to be made else the property will be sold in auction for the highest bidder after the auction.
Non judicial foreclosure which does not involve supervision of court, the foreclosing party specifies the amount due and sends a notice to the borrower.
This situation occurs when the amount to be paid to the lender is more than the property value. But the borrower is free from his debt once he pays the difference amount only.
Types of Foreclosure scams:
Consultant companies are usually involved in these scams. The ways in which fraudulent scams may occur are
*via internet or telephone
Dc Fawcett has stated his reviews on how to overcome when there is a shortage of mortgage payments. They are
*Modify the existing loan, in addition to that there must be a certain proof that the borrower is undergoing financial crisis and own a proper household name.
*Selling the property
*Giving out for rental purpose where the amount is equal to mortgage payment
DC Fawcett has presented several ways on how to overcome mortgage issues and foreclosure. His virtual real estate investing club contains blogs where investors from anywhere in the world can submit their trades before investing his/her capital which would also help other traders from different backgrounds to know the ongoing real estate scenario better.