If you have purchased a home and you did it with the money provided by a lending institution then the lender will have a security interest in the property. If you fall behind on your monthly obligation, called a mortgage the security interest that the lender has gives him the right to foreclose on the loan. When a home is foreclosed it can be auctioned off, the proceeds from the auction will be applied to the outstanding loan amount.
If the property is not sold or the amount paid for the home was insufficient to cover the loan it is possible that a deficiency judgment could be brought against you. A foreclosure in Royal Palm Beach and a deficiency judgment will make purchasing any property in the future very difficult. Having your property foreclosed upon is serious, but there are options that may be pursued to stave foreclosure off.
It is important that the homeowner understand that the lender has every legal right to foreclose as long as it is done in accordance with the law, this is something that cannot be avoided by hoping it will go away. The first thing that must be done is to make an honest assessment of one’s financial situation to determine why the foreclosure happened. If the problem is temporary, perhaps the mortgagee lost his or her job, then it may be only a temporary situation and you may soon be financially viable again. On the other hand, it may be that foreclosure is inevitable and that loosing the house may be the best thing.
There are professionals to turn to; credit counselors and lawyers that focus on foreclosure law can provide valuable professional advice when you are faced with foreclosure in Royal Palm Beach. It is often possible to negotiate with the lender, perhaps lowering the monthly payments or adjusting the interest rate which will help to avoid foreclosure. These professionals can help you assess your own financial situation, including your debt load and if possible, develop a plan that will prove to be beneficial to both you and the lender. Lenders would much prefer to avoid foreclosure if they can.
You always have the right to go directly to the lender; it is not in their best interest to foreclose on the property as their income depends on collecting the principal and interest on the loan you took out. If your situation can be explained and it is only short time, then you can be sure that the lender will be keen on coming up with an equitable solution.
If you are in default on your mortgage obligation and you are facing foreclosure in Royal Palm Beach then you may wish to discuss the options with an attorney.