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Anticipating an imminent foreclosure can be stressful. Not only are you facing the possibility of losing your home, but you are also faced with lasting financial consequences and difficult decisions. Protect yourself by getting educated on the process, and be sure to contact a skilled attorney to help you through it. Here’s what you need to know.

A Guide to Foreclosures

What is a foreclosure?

A foreclosure occurs when you have failed to keep up with the payments on your home loan. When you have defaulted on your mortgage or broken the terms of the agreement, the mortgage company begins the legal process by which the owner forfeits all rights to the property, and your home is repossessed.

What are the consequences?

foreclosureFirst and foremost, you will be evicted from your home, which will be sold at auction. Because you are no longer the property owner, you will also lose any equity you have in the property. It can also damage your credit, which can keep you from getting new housing and loans for several years. It may also prevent you from being hired at some companies. You will also forfeit the ability to get a Fannie Mae mortgage for the next seven years. Finally, in some cases, you may have to pay a deficiency balance after the house has been sold.

When and where is the foreclosure sale?

In Alabama, the sale typically occurs on the steps outside of the front entrance of the courthouse. In order to comply with local laws, the sale must take place at the advertised date during legal hours, which are 11 a.m. to 4 p.m.

How is the property bought?

Foreclosed properties are sold in an auction setting with the highest bidder winning the right of purchase. Often the buyer is the company that claims to own your note, but they can sometimes be an investor.

What is a foreclosure deed?

This is written proof that the ownership of the property was transferred from you to the new buyer. It is the purchaser’s responsibility to record the deed in probate court. Until this deed has been produced, the house has not changed ownership.

How do you avoid losing your home?

It’s essential that you take action right away and don’t avoid the problem until it’s too late. Work with your mortgage company and hire a skilled attorney to help you negotiate and educate you about your options. If you can’t avoid giving up your home, you may be able to forfeit it without allowing your credit to be damaged.

 

Be proactive about your foreclosure situation by contacting Padgett & Robertson, Attorneys at Law in Mobile, AL. These legal professionals have the knowledge and experience to guide you through the process and help you avoid losing your home. The practice has been serving clients in Southern Alabama with compassion and dedication for more than 35 years. Allow them to help you regain your financial freedom by calling (251) 342-0264. Learn more about the practice and its services by visiting the website.

Disclaimer: No representation is made that the quality of legal services to be performed is greater than the quality of legal services provided by others. We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.

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