What happens during a home foreclosure?
The home foreclosure process is fairly straightforward. It starts with a legal notice as per the terms of the mortage loan agreement notifying the borrower that an event of default has ocurred, and giving the borrower "X" days to cure the alleged default. If the borrower does not cure the default within the time specified in the notice, the lender can then declare a default and proceed with the legal process of foreclosure. How long it takes depends on many factors, including the state where the property is located and whether the borrower is affirmatively defending the default allegation, as well as many extraneous circumstances and outside factors, such as local market conditions. Foreclosure can take anywhere from a few months to a few years or longer. Some borrowers have been able to fend-off foreclosure indefinitely in an uncertain housing market. There are only two potential outcomes to a foreclosure action: either the lender will successfully foreclose on the property or it will not. If the lender is successful the court will set a date of possession and from that day forward the property will belong to the lender or its agent and any persons remaining on the property will be subject to eviction. Legal actions taken will involve both the mortgage note and the mortgage lien, which together make up a mortgage loan agreement. It's important to understand that the foreclosure process is executed upon the mortgage lien, not the mortgage note. Even after foreclosure on the lien, the note (the promise to pay) remains. The remedies available to collect on a defaulted mortgage note are generally the same as any other commercial debt, except the amount of the note must be reduced by any proceeds of a sale of the foreclosed property, which will take time to complete.
What happen if u lose a job before closing date?
Do your best to maintain your job at this point while looking for another job. You may want to consider getting 2nd job at this point just in case. More than likely, the loan company is not going to ask you. They may find out and the deal will fold. Some companies are known to check the day of closing. Remember you could lose your job immediately after closing and be in the same predicament. You would have to decide if you willing to take the risk. If you are willing, use the "don't ask don't tell" policy.
Foreclosure!! How long long till my bank kicks me out?!?!?
I just got a letter from my bank saying that they are going to foreclosure on my home if I don't pay back what I owe them. I'm about 3 months late on my mortgage. I called my bank several months ago and told them that my husband had lost his job and that we were going to pay but might be late or have to make partial payments but without his income its been harder to make payments than I thought. I just need to know if this letter means that they foreclosed on our home already? What can we do to stop this and keep our place and how we have until they evict us? Please I would appreciate any help!
Is it allowed to preclose a PMAY SBI home loan before its 15 year tenure? If so, then what will be the process?
There is no PMAY SBI Home Loan.PMAY is just a scheme by the Govt. Of India for the affordable housing loan in which you can get subsidy upto certain amount which is classified under different categories I.e. EWS/LIG,MIG-1,MIG-2Explanation of these is another issue.For your question yes you can pre close your home loan even if you are qualified under PMAY.
Is it good to pay off the home loan as early as possible?
Prepaying or foreclosing Home Loans can be good if planned well and timed right. Here’s a breakdown of the pros and cons to help you decide for yourself:ProsDuring the repayment tenure, the EMI stays fixed but the amount of interest and principal being repaid are changing- initially, the EMI consists mostly of the interest, and less of the principal and vice versa in the later years of the tenure. Therefore, prepaying a loan in the initial years is more profitable than in the later years.In case of Home Loans with a floating interest rate (i.e. the interest rate keeps changing throughout the tenure), banks and NBFCs do not charge any prepayment or foreclosure charges as per the case. So, there are no additional charges when prepaying or foreclosing loans.The amount prepaid in favor of your Home Loan is eligible for tax benefits under Section 24B as it comes under the ambit of interest repayment.ConsPrepaying Home Loans with fixed interest rates entail prepayment charges; same is the case for loan foreclosure. These charges amount to about 1-3%, depending on the bank or NBFC.Home Loan repayment provides collective tax benefits of up to Rs 3.5 lakhs per financial year (maximum of Rs 1.5 lakhs for principal and Rs 2 lakhs for interest repayment). With loan foreclosure, these tax benefits will no longer be applicable.Reference Read:Points to Keep in Mind When Closing Home LoanHome loan Tax Exemptions and Benefits