Articles...
Posted on 7/28/05
FORECLOSURE
Though the term Foreclosure may sound very complicated but it has a very
simple meaning. To put it in a straightforward manner, foreclosure is
essentially the process by which a borrower, mortgagee or trustee upon
default in the payment of a mortgage is deprived of his or her interest in
that specific mortgaged property.
This is usually a legal process in which a forced sale of that property takes place and a public auction is made. The money generated through that auction is applied or channelised to pay of the mortgage debt.
Foreclosure can be a very difficult and traumatic event for any body. The lender giving the mortgage has full right to take up that property if the borrower is unable to pay his dues as and when he is supposed to. The Mortgage Company or lender has full right to do what they wish with the property, the borrower no longer has any right to it once this process of foreclosure takes place.
If you are interested in buying a property or house or even business and are borrowing money from a moneylender to pay for it and put up your property as a security, it would be wise to go over any and every detail pertaining to foreclosure with the lender.
Many a times you could be ignorant of the fine print, which exists while you are borrowing money from a lender and unknowingly commit a default in the payment, the leading to all your rights and interests being taken away. There fore always read the fine print and if need be even consult a lawyer.
It is not necessary that the money borrowed should be for the very property, which you have mortgaged, the money can be borrowed for anything and the property can be put up as a mortgage or security for that loan.
Once that has been done, any kind of default in payment can result in the process of foreclosure.
