About Foreclosure Wellington FL

Foreclosure is the process that involves the sale of a borrower’s property by the lender once the borrower defaults in payment of a loan. This, therefore, results in the borrower losing the property that they had stated as collateral. Foreclosure Wellington FL happens when a borrower fails to make their monthly mortgage payments. The lender, therefore, seeks the foreclose to allow them to cover the remaining loan balance.

As a homeowner or borrower, you need to know that there are two types of foreclosure. These are

Judicial foreclosure

This is where the court oversees the process of foreclosure. The court therefore supervises the whole process. This usually happens when the lender initiates the foreclosure and takes the matter to court. Once the sale of property happens, the court ensures that part of the proceeds are given to the lender to settle the remaining loan balance, the rest to the holders of lieu and if any is remaining, it is given to the borrower.

Power of sale foreclosure

This is where the lender has the right to sell the property without the supervision of the court. This usually happens when there is a power of sale clause in the deed of trust or in the mortgage itself. The lender can actually make use of foreclosure services that are available from certain trustees to ensure proper management of the sale.

Trustees extend foreclosure services to lenders. These trustees ensure the proper management or conducting of the sale of the property or management of the property all together. They can carry out debt collection for the lender. When a borrower defaults in repayment of the debt, they conduct the foreclosure process on behalf of the lender.

A borrower can contest or prevent foreclosure Wellington, FL. This is possible by refinancing and modification of the payment plans to ensure that they get to pay lower amounts monthly. One can also declare bankruptcy to ensure that the lender does not sell their property and that they get an extension on the period of repayment of loans. A temporary arrangement with the lender can also go a long way to see you avoid foreclosure.

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