Foreclosures are mandatory sales of property by financial institutions. A foreclosure typically occurs when a homeowner gets a home loan from a lender and uses the home as collateral. If the loan is not repaid, the lender can foreclose. Subsequently, the property is taken away from the homeowner and sold to repay the outstanding debt.
Foreclosure Basics
Foreclosure in Hamilton, OH is the lawsuit brought by a lender to force the sale of a home to satisfy a debt. In most cases, courts fix the overdue balance, including interest, and order the sale of the home. The proceeds of the sale are applied to the debt but homeowners have the right to pay the balance before the sale to keep their home. Some areas allow property owners to pay the balance and take back the property after the sale. Referred to as the right of redemption, it only lasts for a certain time.
Acceleration Clauses
Acceleration clauses are found in many mortgages and can often bring about an early foreclosure. An acceleration clause permits the bank to call in the entire balance if a set number of payments are missed. If a mortgage contains an acceleration clause, the bank can sue for missed payments plus the entire loan amount. Property owners must be given adequate notice before the acceleration clause can be used.
The Financial and Emotional Consequences of Foreclosure
A person’s investment in a property is substantial from financial and emotional standpoints. The concept of foreclosure can be a traumatic one, even one in a hopeless situation may not want to accept that they will lose their home. To prevent arrearages from getting out of control and to help clients accept their situation, most lawyers will advise clients to escrow the monthly mortgage payment.
Homeowners Should Consult a Lawyer if They’re Facing Foreclosure
If a person believes that they may default on their mortgage and lose their property in a foreclosure in Hamilton, OH, a lawyer will help him or her decide whether there are other available options such as bankruptcy. A foreclosure lawyer such as R. Dean Snyder can represent clients in court proceedings to ensure that their interests and legal rights are protected.
