Medical emergency or illness that results in a large medical debt. Divorce or death of a spouse or partner who contributed to the income. Borrowers who are late in paying their mortgage usually take a series of steps before facing foreclosure. Foreclosure is the result of breaking your repayment agreement with your lender and not making alternative repayment arrangements, such as a loan modification.
What are the main cause of foreclosure?
Medical emergency or illness that results in a large medical debt. Divorce or death of a spouse or partner who contributed to the income.
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What are the risks of foreclosure?
A common risk when buying a foreclosed property is paying more than the current market value of the home. Your rental plan may be delayed.
How foreclosure affects your future?
Unfortunately, a foreclosure hurts your credit score, meaning that it will be more difficult and sometimes impossible to obtain credit cards and loans in the coming years and that you can expect to pay higher interest rates. Foreclosures usually occur only after you miss at least four consecutive monthly payments (120 days of delinquency).
What is the most common method of foreclosure?
Non-judicial (the party enforcing the foreclosure follows a series of out-of-court and state-specific procedural steps to foreclose the mortgage). The most common method of foreclosure in Iowa is called “foreclosure without repayment.” Most states require mortgagees to sell foreclosed properties at a public auction.
What is us foreclosure?
Foreclosure occurs when a homeowner can no longer make mortgage payments as required. This allows the lender to seize the property, remove the owner and sell the house, as stipulated in the mortgage agreement.
