Foreclosure Help

A foreclosure is a legal process that allows the mortgage lender to sell or take possession of your house due to a failure to make the payments on the mortgage loan.

The lender can foreclose on the mortgage by selling the property and using the proceeds to pay off the mortgage loan and any legal costs. If the promissory note in connection with the mortgage was made with a recourse clause then, if the sale does not bring enough to pay the existing balance of principal and fees, the mortgagee can file a claim for a deficiency judgment.

Do banks want to foreclose on your property? Definitely not! Mortgage lenders do not want to foreclose on a property.

Foreclosure is a very costly procedure and is a last resort for mortgage lenders. In most situations, mortgage lenders lose more money by foreclosing than by modifying a loan. If the borrower is able to maintain their home and continue making the monthly payments on a modified loan, the mortgage lender will continue to profit from the loan. The bank lends money so that they can collect the principal and interest payments. It is possible for a bank to lose $0.35 to $0.80 on the dollar for any foreclosed property.

One of the best alternatives to foreclosure is to pursue a loan modification and avoid foreclosure.