What is foreclosure? How does foreclosure happen? What is the legal process of foreclosure? Is it inevitable? These are questions that I am sure everyone is asking themselves with this foreclosure crisis at hand. But there is a bigger question on the horizon; can we stop the foreclosure crisis, and who and what holds the key to this problem?
In today’s economy foreclosure seems inevitable. But I heard something yesterday that shocked me, “The recession is over”! And as one with hope and faith for change, I believe it is true. Recent statistics state that due to job downsizing home foreclosures are up to forty-seven percent from March 2007, and up another seven percent from last month alone. At this growing rate home foreclosure will be at approximately eighty-four percent by 2010. These staggering statistics are alarming for homeowners as well as potential home buyers. Now that we know what the problem is, are there any possible solutions? Can foreclosure be stopped or at least halted?
The questions we are trying to solve are how to stop foreclosure and what is the solution; these questions have been rolling around in my mind for a whole week. I puzzled my head, and brainstormed with some of the most intellectual thinkers I know to come up with a feasible answer. Then I realized to solve an almost inevitable event you need a reliable and efficient answer. Now that I know what I need, another problem arises, how do I obtain a solution to it?
The answer did not come easy; to find it I had to find out how the problem began so that when I search my mind over for the solution to the problem it will not reoccur. So, I began my search with the word foreclosure to define what it really is, and what does it mean for the home owner and everyone that is evolved. Foreclosure is defined as a situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract.
To accompany the definition of foreclosure there are certain actions or steps that must take place. These are the steps of foreclosure listed by Vision Credit Education Incorporated. Step one of foreclosure is the notice of default, this letter will let you know how much you are behind on your mortgage and how you can catch up on your payment. If you receive a notice of delinquency, this is the same letter and should be treated with a high level of importance just as you would the notice of default. Step two of foreclosure is the notice of acceleration, which means that it is the official notice that your lender wants to terminate your mortgage loan.
The third and fourth steps are sale notice and public auction. Sale notice basically means that your lender has given you a sale date and you have several options you can choose from before they put your home in a public auction. When public auction...