June 14, 2021

What is Difference Between Foreclosure Actions and Foreclosure Judgments?

Foreclosure Actions is one of the more common types of foreclosure. In most states, homeowners are given a certain amount of time, generally one month, to come up with a solution to their mortgage payments. The homeowner is then given a certain amount of time to sell the property, move out, or rent out the home – whichever the homeowner chooses. If a homeowner fails to make these arrangements and fails to come up with the required money for their mortgage payment, the lender will proceed with the foreclosure process.
|Foreclosure Actions What is Difference Between Foreclosure Actions and Foreclosure Judgments?

Foreclosure Actions is one of the more common types of foreclosure. In most states, homeowners are given a certain amount of time, generally one month, to come up with a solution to their mortgage payments. The homeowner is then given a certain amount of time to sell the property, move out, or rent out the home – whichever the homeowner chooses. If a homeowner fails to make these arrangements and fails to come up with the required money for their mortgage payment, the lender will proceed with the foreclosure process.
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Foreclosure Actions is different from Bankruptcy in that the proceeds of the sale of a foreclosed home are kept by the lender and not given to the homeowner. So a Bankruptcy action does not release any money to the homeowner. Foreclosure Actions is only granted by the courts after the lender has given the homeowner notice that they have an inability to pay the mortgage. These notice periods vary from state to state.

A Foreclosure Action is an order from the court which states that the lender has, through default, chosen to foreclose on the property. At this point, the court does not have the power to reinstate the mortgage. Instead, the lender must take the homeowner to court and attempt to get an order for foreclosure. If the lender’s request for foreclosure is denied, they can again try at the court and the process repeats. This is a long and expensive process, especially for borrowers with no place to turn for assistance during the foreclosure process. Click here for more information about Phoenix bankruptcy attorney

Foreclosure actions are not the same as Deed in Lieu of Foreclosure. A Deed in Lieu of Foreclosure is simply a legal proceeding in which a person or business takes another’s property because the owner is unable to pay the loan. Foreclosure actions are different, as they allow the lender to take the property without having to go to court. If the lender obtains a foreclosure judgment against the borrower, they can then start the foreclosure process.

Foreclosure actions take a much longer period of time than the other process, as they are a long and expensive process. The foreclosure process is also much more strict when it comes to non-judicial foreclosure. There are other options that borrowers can use in order to stop the foreclosure, such as loan modifications. However, since these actions do not give the borrowers a choice or time to save their home, most often they are not successful.

Lenders do not want to foreclose on homes; however, there are significant penalties and fees that make it difficult to do so. Foreclosing on a home requires a tremendous amount of time and resources, which lenders are not willing to give up on. As a result, the lender often will just proceed with the foreclosure instead of taking the risk of losing the property to foreclosure.