Foreclosure – an Equitable Proceeding That Can Take Away Your Property
Posted by | Posted in Foreclosure | Posted on 17-11-2008
Most often when you obtain a loan from any creditor like the bank or other financial institutions, they ask you toe execute a Deed-in-lieu of Foreclosure and the conditions laid down therein are that if you fail to repay your dues in time then the creditor shall have the right to occupy your property in part or in full. The deed is also called a mortgage or trust deed.
Thus as a debtor your primary concern shall always be how to stop foreclosure. This requires that you keep a track of your credit and repayment schedules and see to it that you do not default on any count and even when you default, you notify your creditor prior to such failure to repay.
Foreclosure in most countries is regulated under the laws of the land. If you remain unaware about the provisions in the foreclosure laws it may hurt you in the long run. For example, the law in the earlier days was that once a debtor defaults in payment his mortgaged property automatically devolves on the creditor. With the passage of time however it was considered the process of natural justice to allow the mortgagor a fair amount of time to clear his debts and get his property released.
It means that in effect you are going to get a rescheduled repayment plan to pay your debt and clear your properties from lien.
