Pacific Escapes Real Estate, inc

When a homeowner fails to make their mortgage payments, the lender may initiate a foreclosure action. The exact process and timeline can vary depending on the state, but generally, the lender must provide the borrower with a notice of default and an opportunity to cure the default before the foreclosure can proceed.

If the borrower is unable to bring the loan current, the lender may then sell the property at a public auction. The proceeds from the sale will be applied to the outstanding mortgage balance. If the sale proceeds are not enough to cover the balance, the borrower may still owe the difference, which is known as a deficiency balance.

It’s important to note that in some states, the lender may choose to pursue a deficiency judgment against the borrower, which would allow them to seek payment of the deficiency balance through wage garnishment or bank account seizure. In other states, the lender may be barred from pursuing a deficiency judgment.

In any case, a foreclosure will have a significant negative impact on the borrower’s credit score and credit history and can make it more difficult to obtain credit in the future. If you are facing foreclosure, it’s important to talk to your lender as soon as possible to understand your options and take steps to protect your credit and financial future. You may also want to consider seeking the advice of a housing counselor or an attorney.