An Auburn & Opelika foreclosure defense lawyer can help you when facing foreclosure.
With the national foreclosure moratorium due to the COVID-19 epidemic no longer in effect, foreclosures in the United States have seen a dramatic increase over the last several months.
Given the reality that more Auburn and Opelika, Alabama residents are now vulnerable to their homes being foreclosed on, it is important that homeowners know the reasons why lenders may choose to pursue foreclosure and how the foreclosure process unfolds.
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
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Why Lenders Pursue Foreclosure
Though purchasing a home with cash has seen a recent increase, the overwhelming majority of homebuyers still need to finance their homes because they simply do not have a spare $90,000 to $500,000+ lying around.
Sometimes the desire to be a homeowner can be so strong that a person is willing to agree to a mortgage agreement that is not sustainable long-term so that they can purchase the home. Often, though, when this occurs, homeowners realize they are unable to afford the mortgage payments.
They begin to miss consecutive payments.
They eventually default on the loan and the lender usually sends what is called a “breach letter” to the debtor. Breach letters alert debtors that the loan is in default. If the payment isn’t made within the stipulated time, the lender can accelerate, or call due, the loan.
If the debtor still does not make the loan payment, the lender will initiate a foreclosure on the home.
The Foreclosure Process
In most mortgage agreements the foreclosure process officially begins when a loan is delinquent for more than 120 days.
The lender, then is required to post a notice of foreclosure for three consecutive weeks in the newspaper before the home can be sold.
Once the home has been posted for three weeks, the lender is then able to hold an auction for the sale of the property.
In Alabama, debtors who have had their home foreclosed have a brief period in which they can redeem the home by coming up with the necessary money to satisfy the loan agreement.
The period during which a debtor can redeem the foreclosed home varies by case.
If a lender gives the debtor a notice of the right of redemption 30 days before the foreclosure, the debtor has 180 days to redeem the property. If the lender fails to give a notice before the auction of the property and sends a notice afterwards, the debtor has 180 days from the date of the notice to redeem the property.
If the lender never provides a right of redemption notice to the debtor, the debtor has no more than a year after the foreclosure date to redeem the property.
When you are facing a foreclosure in Auburn or Opelika, AL, be aware that a lender cannot evict you without giving proper notification. In order for a lender to evict a debtor in the process of a foreclosure, the lender must provide a notice of eviction at least ten days before beginning eviction proceedings.
Help While Facing Foreclosure in Opelika/Auburn, AL
David S. Clark is a foreclosure defense attorney serving the residents of Auburn and Opelika Alabama able to help you navigate the difficult waters of home foreclosures.
David and his team will work on your behalf to help you avoid foreclosure, if possible, or come out on the other side of foreclosure in a more stable financial position.
If you are facing foreclosure in Opelika or Auburn, AL and need a foreclosure defense lawyer, contact David S. Clark today.
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.