delinquent in payments before the lender can start a foreclosure.
The lender sends a letter, notifying its intent to begin foreclosure. In some cases, the lender sends a notice of intent to begin foreclosure proceedings. The summons and complaint give a period within which the borrower must respond choosing to contest or argue the lawsuit (usually between 20 and 30 days). Without response, the chances are excellent that the foreclosure will go through. The court will issue a default judgment that authorizes the lender to sell the home. If the borrower responds, a hearing is scheduled in which borrower can tell a judge why foreclosure shouldn’t be permitted. The better the defenses, the longer the process will drag out. If the court decides in the lender’s favor, it will enter a judgment ordering the sale of the home to satisfy the debt. If the property is not sold at the foreclosure sale, ownership goes to the lender. Even when the borrower loses ownership of the home, most state laws don’t require moving out immediately. Typically, the tenant can remain in the home, payment-free, until receiving an official, written eviction notice.
But it’s best to move out now.
EXCESS MONEY
Once your property has been sold at the auction, you have the right to any remaining funds once the lender has recovered the money you owed. The lender may not keep the full sale price of the home because of your default on the loan. However, the lender keeps all fees from the foreclosure and from the balance owed. Any remaining amount is paid directly to you, if there
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