During the foreclosure process, a foreclosure attorney represents either the bank or the homeowner. In the United States, foreclosure is the legal term for a judgment in which a bank repossesses a home due to nonpayment of a mortgage. The parties involved in such a legal action are represented foreclosure lawyers.
The law governing foreclosure in the United States varies state. In most cases, however, the procedure starts when the homeowner falls behind on his payments. Most banks will contact the buyer right away to try to collect late payments, but the formal foreclosure process will not begin until the homeowner is several months behind on his mortgage.
Requesting to see the original promissory note can help homeowners delay the foreclosure process. It may be difficult for the bank to locate this note if a mortgage has been transferred from one lender to another. A foreclosure attorney representing the homeowner can assist the homeowner in making such a request, as well as come up with other delaying tactics to keep the foreclosure from happening.
Delay tactics may be beneficial to a homeowner who is facing temporary financial difficulties. An attorney, for example, can challenge each step of the foreclosure process in order to buy a homeowner more time. Attorneys may also be able to assist homeowners in negotiating with lenders to facilitate a short sale, which is usually less damaging to a borrower’s credit score and less costly for the bank than a foreclosure.
When a homeowner falls behind on their payments for several months, the bank will usually start the formal foreclosure process. This usually entails notifying the clerk or another court official of the default. This notice can be filed on behalf of the bank a foreclosure attorney who represents the bank.
A formal notice of default or a demand letter is then sent to the borrower the county clerk or another appropriate official within the jurisdiction. This letter usually specifies what the buyer must do to bring the mortgage current and avoid foreclosure. To put it another way, it spells out when and how much the borrower must pay in full to end the legal action.
The borrower can then make a full payment or work out an agreement or arrangement with the court or lender through his foreclosure attorney. Although it is usually too late to refinance or work out a payment plan at this point, the attorney can still help the homeowner explore his options. Further delays in the foreclosure process may be facilitated the attorney.
After the demand letter is sent, if the homeowner does not make payments to bring his mortgage current, foreclosure will proceed. The home is usually given to a trustee after a notice is published in the newspaper. During this time, a foreclosure attorney representing the lending institution facilitates the transfer of the property. Finally, the home is listed for sale at a foreclosure or sheriff’s sale, and a lender’s foreclosure attorney may be able to assist with any legal steps required to prepare the home for sale.