With the financial crisis intensifying many foreclosure queries and answers are taking centre stage. It is all about life and living.
One questioner wanted to know how long one can legally continue to stay while the foreclosure legal procedure rolls on. The advice is to talk to the lender first. Legitimate lenders do not want eviction and be saddled with yet another non-performing eerie vacant reo property . Eventually the lender will have to bear the cost of maintenance and taxes if the house remains unsold. In the buyer’s market of today this is more often the instance. Simultaneously it is advisable to check with the county and state authorities. Many have programmes and plans to help foreclosure victims.
The occupier will have to move out of the house as per rule of thumb, as soon it is sold. Here again a direct talk with the lender will clear the gray areas. If the borrower can pay some rent, in many instances the lender permits them to stay. On no account do the lenders want to be weighed down with empty houses.
A wise foreclosure victim will attend the sale to find out who the purchaser is. If there are no second bids then often the lender takes over the unit. In that case again there is a good chance of working out a viable and affordable solution.
Although it is expected that the occupier move out, many do not do so until the eviction notice is served.
Another query is about fees charged for examination, loan origination. Many are of the opinion that these are just junk charges. The general opinion is that that these are taken merely to line the pockets of the lenders on flimsy pretexts. For many years lenders have been taking anything from $50 to $75 as fees for credit searching. Lately anyone can get a credit report without paying anything once a year. As such the lenders should be charging much less. Loan origination fees are junk. But if one needs a loan badly then there is no option but to dance to the tune of the lender. Knowing the rules, when foreclosure threatens the borrower can use this knowledge as leverage for negotiations in refinancing and modification. Title examination charges are however legitimate. Keeping the house as a security the lender is going to advance a large sum of money. As such it is justified that the title of the property is properly searched. In the mortgage deed it will clearly stated that the lender has the right to foreclose if the lender defaults.
