What Constitutes A Lien Foreclosure?


A lien foreclosure is used when it is necessary for a lender to enforce a claim on real or personal property. Lenders often use a lien to protect their interest when they loan money to make a purchase. In the event the borrower does not make the repayments in accordance with the loan agreement the lender may instigate a lien foreclosure in Lake Worth on the property in question. Foreclosure is a legal procedure that allows the lender to force the borrower to return the property; the lender will then sell the property in an attempt to recover the amount he is entitled to from the borrower.

As an illustration; most people who are buying a house need to borrow money to make the transaction. The institution that lends the money is called the mortgagee; the lender who borrows the money to purchase the property is called the mortgagor. In return the mortgagor enters into an agreement with the mortgagee where he agrees to pay back the loan with interest over a specified period of time. All the terms of the agreement are specified in a document called the mortgage, the mortgage acts as a lien on the house.

Now; if the mortgagor cannot make the payments as agreed in the mortgage, the mortgagee has the right to initiate foreclosure in Lake Worth. The actual foreclosure procedure varies from one jurisdiction to another but typically the mortgagee must give the mortgagor a notice of default prior to instituting any legal action. The idea behind the notice of default is to provide the mortgagor with an opportunity to make the default right by bringing the loan up to date. This opportunity is usually limited to a window of 30 days before default proceeding begins.

The actual lien foreclosure process varies depending on where the house is located. The purpose of the foreclosure in Lake Worth is to eliminate the mortgagorā€™s right of redemption. The right of redemption is a right that gives the mortgagor an opportunity to pay the debt and keep the house. In most cases the redemption period is one year. If the court has already entered a foreclosure decree the redemption period ends when the property is sold.

To eliminate the possibility of destroying his or her credit rating the mortgagor may negotiate a deed in lieu of foreclosure. This can minimize the losses of the mortgagor when it is recognized that the debt default cannot be cured. If the mortgagee agrees the borrower will convey the deed to the lender and the lender cancels the debt arising from the mortgage.

If you are behind on your mortgage payments and you are being threatened with foreclosure in Lake Worth you may wish to discuss your legal options. You are invited to contact the Law Offices of Sean I. Koplow.

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    Law Offices of Sean I. Koplow, P.A.

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