Mortgage Foreclosure: What are the Rights of a Homeowner?

sell a house fast for cash in Ferndale

If you are behind in your mortgage payments, you might face foreclosure. But you can stop foreclosure by acting immediately. Many homeowners make the mistake of not doing anything and accepting it as their fate. As a result, they lose their houses to the auction. Whether you have already faced mortgage foreclosure or at the verge of doing so, you always have options.

Knowing your foreclosure rights can protect you from financial issues and other problems. The most common option is to sell a house fast for cash in Ferndale and use the selling price to cover debts. However, we have listed some options you may consider in foreclosure.

Foreclosure rights: Everything you need to know

First, it is crucial to have a legal professional who can assist you throughout foreclosure proceedings. After all, the laws vary from one state to another. For instance, some states may need you to cover payments before starting the foreclosure process, and others may allow you to reinstate your loan. Here are a few things you need to know about foreclosure.

  • Timeline – The foreclosure timeline depends on factors like your mortgage agreement, state and federal laws, mortgage holder, etc. On average, you may face foreclosure when you miss three to six payments.
  • Notice of Default – If you fail to catch up with mortgage payments, the holder will send you a notice of default. It is a formal notice to bring your attention to missed payments so that you clear them at the earliest.
  • Time to restore the notice of default – After the notice of default, the holder gives a limited period of time to the homeowner to restore the default. This means you have to pay the due amount during this time. Besides this, you may have to deal with penalties, interest, attorney fees, and other expenses.
  • Foreclosure sale notice – If you did not attend to the default within the given time, the next step is foreclosure sale. Your mortgage holder will send you a notice for this.
  • Redemption period – Some states also offer a redemption period to homeowners even after the sale. If your state has this option, you can reclaim your house.

A foreclosure sale may cover debts like mortgages, loans, and even second mortgages. But even  if it does not cover all your debts, you still have to pay them. Yes, even when you lose your home to the foreclosure sale. Also, your mortgage lender can file a deficiency judgment if they do not get their money back. This happens if the selling price of the property is less than the amount you owe to them. To collect the debt owed, they can take your other assets. But deficiency judgments are not allowed everywhere. Thus, it is advisable to hire a reliable lawyer to understand your rights.

The easiest way to avoid and stop foreclosure is to sell your house in Ferndale to Detroit Cash For Homes. We never ask you to undertake repairs and renovations. Thus, you can sell your property as-is without any delays.

The bottom line

Unlike losing your house to a foreclosure sale, selling it directly to Detroit Cash For Homes is ideal. We offer a fair selling price that you can use to pay your mortgage lender. The remaining amount can act as a down payment for a new house.

Do you want to sell a house fast for cash in Ferndale, MI? If so, thencall us to discuss your property and get a free estimate.