What is a secure transaction? A secured transaction is one where you have an obligation, which is usually a promissory note. And there is a pledge of collateral that goes secures the note so that if the note is not paid, then the lender has a right to take back the collateral. So, the obligation is secured by what the collateral is and a real estate transaction. You have the bar or sign the note, and then they also sign a mortgage. And the mortgage states that if they don’t make the payments on the promissory note, they don’t pay the taxes or keep the property insured. Then you have a right if they default to foreclose and take their property away. So, you’re secured for the value of whatever the collateral is. If it is personal property, such as an automobile, they have, you signed what they call a security agreement.
And that’s where you’re pledging the automobile for the repayment of the loan. If you default on the loan and there that controlled by the uniform commercial code, which allows them self-help, which is usually a repossession of your automobile with a tow truck driver or whatever. And then they sell the, automobile at auction or whatever, to try and recoup as much as they can to repay a portion of the debt. So, sometimes the obligations are over secured in which case you’re entitled to any excess. If the collateral is not worth or not worth what is owed well, then you may be sued. And for the difference between the value of the collateral when it was sold or at the time of the sale, and how much is owed and a judgment entered against you. If you have any questions about a foreclosure action, or give me a call at (727) 847-2288.
May a Lender Perform an Interior Inspection of the Property if They Have Concerns About Property Condition?
May a lender perform an interior inspection of the property if they have concerns about the property condition? The answer to that is no, they can not. Unless the loan is in default, the mortgages don’t allow them to do an interior inspection due to the condition. They only have a right to, they can do a drive by, there is an exception. However, in the residential mortgages, in the event, the property is vacant. They have a right to conserve the property and scene and whenever there’s a foreclosure and the property is vacant, they send contractors out that, hang a notice on the door, that where they’ve gone and secured the property and they’ll enter the interior of the house. There’s been certain abuses of that, when it’s in foreclosure, it’s a tough situation. If they have abused that privilege, if you’re occupying the home or occupying the property, then they’re not going to be able to enter the property while you’re there. So they don’t have a right to do the interior inspection on residential property. If it’s a commercial loan there, you might have look at the terms of the mortgage, but generally if the mortgage is current, they don’t have a right to come in and inspect the interior of the unit. So, if you have any questions about this, give me a call at (727) 847-2288.
I Have No Mortgage On My Condo, But I Owe My HOA 10,000. Notice of Sale Issued. Will I Lose My Condo?
I have no mortgage on my condo, but I own my homeowners association, $10,000, notice of sale has been issued. Will I lose my condo? The answer is yes, the property will be sold that judicial sale. And you will no longer own your condo. I suggest that you go about paying the homeowners association. So, you don’t lose that to get you a home equity loan, or some other kind of loan to pay that, to save your homeowner, save your condominium, or sell your condominium and obtain the equity. Since you have no mortgage on it, it would be a shame to lose all the equity in your home or your property as a result of not paying your homeowners assessments. But they do have a right to foreclose on a homeowner’s assessment lien, and that will be sold at judicial sale. You may receive some of the excess proceeds over the amount of the lien that is sold, but usually at a judicial sale, the property sells for well under what the market value is. If you have any questions concerning this, give me a call at (727) 847-2288.
We purchased a house in foreclosure. Do we need to send a 3 day notice for eviction? No, you do not. You need to file or retain an attorney and have them apply for a writ of possession, which is retained. The rights to have a writ of possession are retained by that the judge in conjunction with a mortgage foreclosures. And what that means is you don’t have to go through the eviction process depending on whether or not the owner of the property before it was foreclosed is still in possession. If so the, the application for writ of possession, should be granted. And an order authorizing the clerk to issue the right of possession should be entered right away, and you should be able to have the sheriff serve the writ of possession and have the person removed without going through an eviction action.
If however, the property was rented at the time of the foreclosure action, whenever you make application or your attorney makes application for the writ of possession, the tenant is given. I believe it’s 30 days notice to an order to vacate, as far as that’s concerned, but you do need to retain an attorney to represent you in conjunction with this matter to have them removed. But an eviction action is not how you go about removing the occupant of the property that had been foreclosed. How many questions about this? Give me a call at (727) 847-2288.
What are the consequences of a home foreclosure? Well, the biggest impact it has is you lose your house. But, if you have found another location to live, well then we get past not having a place to live once they foreclose on your home.
It definitely impacts your credit, and every late payment makes your credit score go down. So, your credit will be impacted by the number of missed payments that you’ve had. The longer the foreclosure goes on, the more it impacts your credit score.
Also, once the foreclosure is concluded, the lender has one year from the date of the foreclosure sale date to bring an action to try and collect what they call a deficiency judgment. So, you would have to wait out another year to see whether or not the lender is going to come after you.
If the lender has forgiven, or agreed not to seek a deficiency judgment, or waived that, they may send you a 1099 and you may be liable for, have to pay taxes, on the property. However, if you owned the house for two out of the past five years, then you won’t have to recognize that gain.
Also, if you want to obtain a mortgage, you are going to have to wait two to four years after the foreclosure before you are going to be eligible to obtain a mortgage from a federally insured lending institution. That is sort of a laundry list of the impacts that mortgage foreclosure has on you if your home has foreclosed.
If you have any other questions or need someone to defend you in conjunction with a mortgage foreclosure action, give me a call at 7276-847-2288. Thank you.