Please address legislation passed that increased protection for homeowners from foreclosure or at least provided a number of additional requirements on the lender prior to foreclosure.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Please address legislation passed that increased protection for homeowners from foreclosure or at least provided a number of additional requirements on the lender prior to foreclosure.
Foreclosure is a legal process where a lender or a creditor or mortgage holder can recover or sell the property if the borrower fails to make the periodic payments on the mortgage during the tenure of the loan or debt.
Legal obligations for a creditor in foreclosure process:
- The mortgage holder must issue the notice to a homeowner which makes the homeowner to understand that he is missing the periodic payments on a mortgage loan and a pre-intimation to clear the missing payments before going to foreclosure proceedings.
- The mortgage holder must file statements which contain the details about the amount owed includes the principal, interest, late charges, attorney fees and any other charges as per the state laws where the property is located.
- Before initiating a foreclosure action, the mortgage holder also required to certify in writing that the homeowner is not a member of the armed services. As per the Soldiers’ and Sailors’ Civil Relief act, an active duty service people are protected and concerned by Attorney of the armed services from foreclosure proceedings.
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