If you have been missing your mortgage payments and are financially in a tough spot, you may already be thinking what happens when a bank forecloses on a mortgage. It is generally in the interest of both the bank and the borrower to avoid foreclosure proceedings, but sometimes this becomes difficult. If you default on mortgage payments, the bank would usually get in touch with you to quickly resolve the problem and get the mortgage schedule back on track. In case your financial problems are temporary and the bank agrees, you may be able to get some concessions on the payment schedule and avoid foreclosure in Cambridge. However, if a resolution is not reached, the bank can implement a foreclosure strategy called, “Power Of Sale.” Access Mortgage can assist you with stopping the power of sale process from proceeding, and help yo get back on track with your payments! Refinancing or releasing equity in the home to pay arrears are a few strategies we use to do this. Read on for more information about foreclosure, and how Access Mortgage can help you stop the power of sale process.
What is foreclosure in Cambridge?
The word “foreclosure” represents a nightmare for both property owner and lender. A mortgage foreclosure is a legal action the lender can take if someone who borrowed money via a mortgage stops paying it back. Foreclosure in Cambridge lets the lender sell or take back that person’s house after obtaining a court’s permission. It’s important to note that the property owner does not automatically lose their property if they make a late payment or miss a mortgage payment. Most lenders prefer not to foreclose if it’s not absolutely necessary, the foreclosure process is expensive and lengthy. Generally, lenders do not start foreclosing until two to three months after the borrower stops paying.
What is the power of sale process?
The Power of Sale remedy allows the bank to sell the property without having to involve the courts. This makes the process much faster, and also increases the chances of a resolution being reached between the borrower and the bank during the foreclosure process. Before the Power of Sale process can be commenced, the lender needs to serve you a notice and provide you a redemption period of 35 days, during which you can pay all the arrears and get the mortgage schedule back on track. However, at this point, you would also have to pay several charges involved in the Power of Sale process. If you choose not to, or are unable to settle the matter at this stage, the lender would serve a Statement of Claim for Debt and Possession, and you will have 20 days to file a Statement of Defence. If you fail to file this statement, the lender would go ahead and obtain a Writ of Possession from the court. The eviction process starts after the Writ of Possession is filed.
How can Access Mortgage help to stop the power of sale process?
Most lenders do not want to deal with the power of sale process or, foreclosure in Cambridge, and will work with you to come up with a resolution. In extreme cases, most lenders will allow you to have extra time to make payments if you ask them. Working with Access Mortgage makes it possible to reduce monthly debt payments by getting an interest-only loan, consolidating debts into the mortgage, or by getting a longer amortization period.
The professional team at Access mortgage can help you stop the power of sale process and keep your home from going into foreclosure in Cambridge. For more information about foreclosure and our services at Access Mortgage, please feel free to continue browsing through our website. Click here to find our contact information and to fill out our contact form.