Foreclosure is the means by which a lender can repossess a house if mortgage payments or terms are not met. The re-sale of a house after foreclosure may be used to repay debts owed to the lender from non payment of mortgage. During foreclosure the house owner has the right to understand every document they are required to sign. They also have the right to know exactly where they are in the foreclosure process. After the foreclosure has been completed the current occupiers will be given an eviction notice period, whereby they will need to remove themselves from the property. The house will then belong to the lender, and is usually auctioned off to the highest bidder to offset any debt owed to the lender. Under certain circumstances the home owner may have the right to a ‘sell and rent back’ scheme. The scheme would see the lender to take possession of the house and allow the occupier to stay on a rent basis, thereby repaying the debt they owe through rent money. Repossession is usually a last resort for lenders, as it is an expensive process, and most lenders would rather secure alternative arrangements for paying back money owed. If repossession has been secured through a legal process, the home owner would be able to appeal any decision made in a court. To be successful, the home owner must demonstrate grounds for the appeal, such as being a victim of predatory lending practices or a change in circumstances that would result in the repayment of any debt owed. Appealing a foreclosure is a legal procedure and a law professional will be required in helping with this. It is important to remember that foreclosure rights can vary depending on the terms of your mortgage.
