Foreclosure on your record is worse than bad credit. Personal bankruptcy is no protection and your mortgage lender can still pursue you under certain conditions.
Bankruptcy will not protect you from foreclosure but it can protect you from the results of a foreclosure under certain conditions. If your loan is the original loan for purchase and has not been refinanced, you may have additional protection.
There are 2 types of foreclosure proceedings a lien holder can use. These are Non Judicial and Judicial.
The Non Judicial is the most common. The lien holder filles a legal document known as a Notice Of Default. They then wait for the lawful time period and sieze the home for auction. The money they receive from the auction is their settlement. It is generally much less than the homes value and they cannot go after you for the difference in what you owed and what they received.
The Judicial proceedings are most generally used when a principal balance or a balloon payment is due. When a lien holder elects to go with the longer Judicial preceedings, they also have the right to go after you for the difference between what they received for the home and what you owed.
The following are places to direct your questions if you think a loan agency is not abiding by the law concerning your situation
- State Banks that are members of the Federal Reserve System.
- Division Of Consumer Affairs.
- Mail Stop 801, Federal Reserve Board, Washington D. C. 29551
- 202-452-3693, www.federalreserve.gov
- Federal Credit Unions.
- National Credit Union Adm. Office of Public and Congressional Affairs.
- 1775 Duke St. Alexandria, Va. 22314. 703-518-6330. www.ncua.gov
- National Banks. Office of the Comptroller of the Currency. Customer Assistance Unit.
- 1301 McKinney St., ste. 3450. Houston, TX. 77010
- 800-613-6743, www.occ.treas.gov
- Federally Insured Non-member State, Chartered, and Savings Banks.
- Federal Deposit Insurance Corporation. Consumer Response Center.
- 2345 Grand Boulevard, Suite 100, Kansas City, MO. 64108
- 877-275-3342. www.fdic.gov
- Mortgage Companies and Other Lenders.
- Federal Trade Commission.
- Consumer. Response Center. 600 Pennsylvania Ave, N.W.
- Washington, D.C. 20580. 877-FTC-HELP; or 202-326-3758. www.ftc.gov
- Federally Insured or Chartered Savings and Loan Institutions and Savings Banks.
- Office of Thrift Supervision, Consumer Programs.
- 1700 G St, N.W., Sixth Floor. Washington D.C., 20552
- 800-842-6929 or 202-906-6237. www.ots.treas.gov
Contact us for further information or to make an appointment at, 805-458-2449 or fred@coastalartisanproperties.com