When an individual purchases something with borrowed money the lender will often use a lien as a way of protecting his financial interest in the asset. A lien foreclosure in Wellington FL is an action brought by the lender to enforce a claim on the property should the borrower default on the payments which were agreed upon. If the borrower does not make the payments then the lender has the right to foreclose on the object property. Foreclosure is a legal process; this process forces the borrower to return the asset to the lender who in turn can sell the property to recover the money owed by the borrower.
A simple illustration; most people need to borrow money to purchase a house. The lender is known as the mortgagee, this institution loans the money that is needed to complete the purchase to the mortgagor. In return for this loan the mortgagor agrees to repay the loan with interest over a specific period of time, the terms of the arrangement are all included in the mortgage contract. The mortgage is a lien against the property.
Now assume the mortgagor fails to abide with the terms of the mortgage and fails to make payments, the mortgagee has the right to foreclose on the property. The foreclosure process is a little different from one jurisdiction to another but generally speaking the mortgagee is obliged to give the mortgagor with a notice of default before filing for a lien foreclosure in Wellington FL. The whole purpose of the notice of default is to provide the mortgagor with a window of opportunity to fix the default, this period is normally 30 days but can be longer in certain jurisdictions.
The whole purpose of foreclosure is to eliminate the buyer of the home his or her right of redemption. The right of redemption entitles the homeowner to an opportunity to pay the debt so as to keep the property. This redemption period can be as long as one year but if the court has issued a decree of foreclosure the right of redemption only lasts until the property is otherwise sold.
In a situation where the mortgagor knows that it will not be possible to cure the default he or she may wish to negotiate a deed with the mortgagee in lieu of foreclosure. If the mortgagee should agree with this proposal the homeowner conveys the deed to the home voluntarily to the mortgagee. This process eliminates the need to go through the courts; this is one way of protecting the credibility of the mortgagor as the debt is simply cancelled.
If you are facing foreclosure in Wellington FL there are a number of ways that you can gracefully leave the home and protect your long term credibility. To discuss the options you are invited to contact the Law Offices of Sean I. Koplow.