If you’re reading this, we assume that you (or a friend or family member) are in danger of losing your home to foreclosure and would like further information. We congratulate you on researching to learn more.
Unfortunately, this is an issue that we will have to revisit frequently. The large banks and mortgage businesses are counting on you to:
Demonstrate to these thugs that you are aware of your rights, and then take action. People with varying levels of understanding about foreclosures visit us. Some people have no idea what foreclosures are. Others include bank officials and seasoned real estate agents with vast experience.
We’ve divided this lengthy post into sections with headings so you can go to the sections that will be most useful to you.
What Are The Repercussions Of Foreclosure?
What Is The Difference Between A Judicial And A Non-Judicial Foreclosure State In Alabama?
Alabama is a state that allows for “non-judicial” foreclosures. Here’s what “non-judicial” foreclosure means in practice.
The court is not involved in a non-judicial foreclosure state (such as Alabama). The mortgage company or servicer must merely follow the law, and the house will be foreclosed and sold on the courthouse steps. It would be best if you double-checked that this was done, as we’ve seen cases when the bank claimed to have completed this step.
On the other hand, our clients were present and were aware that nothing had been accomplished. In our opinion, this effectively ends the foreclosure process. You may compare it to repossession in that the corporation just puts you in default, announces it, and then sells your home at a foreclosure auction.
The foreclosing corporation must file a lawsuit against the homeowner in a judicial foreclosure state (such as Florida). The judge must then find the company’s favor for the foreclosure to proceed.
A mortgage company can technically pursue a lawsuit in Alabama, although this rarely happens. A mortgage company can undertake a non-judicial foreclosure in a couple of weeks rather than waiting a year or more to do a court foreclosure.
The mainline is that the rapidity with which a foreclosure can occur can be alarming. Especially if you read about judicial foreclosure places like Florida or New York or talk to folks, who live there. If you face a non-judicial foreclosure in Alabama, you must move promptly.
In Alabama, how does non-judicial foreclosure work?
The basic procedure is for the mortgage company to declare you in default of the note, at which point the note will be “accelerated.”
This signifies that everything is due right now.
The company will then place a three-week advertisement in your local newspaper.
After three weeks, the house will be sold at the courthouse steps at the advertised time (between 11 a.m. and 4 p.m.) (main entrance). The foreclosure deed will be recorded in the county’s probate court, where your property is located by whoever buys the property at the foreclosure sale – which is usually the firm that supposedly possessed the note before the foreclosure.
The new “owner” can then file a lawsuit to evict you from your home.
What Is A Mortgage Servicer, And How Does It Work?
This is the firm in charge of the day-to-day processing of a mortgage loan, often known as “servicing.” Sending statements, receiving payments, arranging payoffs, charging and collecting late fees and expenses, and so on are all part of this process. The firm that holds your loan is almost always a Trust — an investment entity – with no staff, so service is engaged to conduct the work.
What Is Securitization And What Does It Mean For Foreclosure Victims?
As previously stated, this means that investors can invest in a trust that holds your note.
Consider thousands of loans that are bundled together and then broken down into smaller chunks for investors.
Even if every loan is a fixed-rate 30-year loan, someone can choose to invest for a short period.
Someone else might be looking for a high-return investment, which is plausible.
However, it will not benefit you if you do nothing because Alabama is a non-judicial state, and no judge will ever notice that the mortgage firm does not have the original note…
When there is a catastrophe – and the foreclosure crisis our country and state are experiencing qualifies as a tragedy – scam artists will try to take advantage of victims. Use your common sense to determine how much information the individual promising to assist you are willing to disclose.
Scammers frequently “hide” information, claiming that you must purchase their product or service before the specifics may be revealed. Here are some examples of frauds you may have encountered or will encounter:
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.