Foreclosure redeemed definition
The formal foreclosure process begins once your lender formally accelerates the promissory note that is part of your mortgage. At this point, the legal system gets involved, and a clock has started that will not stop until your foreclosure sale. This is the end of the time period in a foreclosure which your lender is willing to work with you in terms of a modification or other delay of payments.
The good news is that, even though the auction date for your home has been set, you still have a chance to stop foreclosure and restore yourself to full ownership of your home, as you are technically in the redemption period of the process. In some cases, your lender may still be willing to halt foreclosure proceedings if you can bring the loan current. However, by law, the lender must stop foreclosure proceedings as long as you can come up with the full amount of remaining amount due, which consists of principal, interest and fees associated with the loan. As long as you can do this before the sale date, you get to redeem the mortgage and remain in the house. If you redeem the loan for the full value, it is yours.
The downside to a redeemed foreclosure (in addition to all of the stress) is the fact that the foreclosure remains on your credit report for seven years. It does not have as much of an effect as a completed foreclosure, but it still is a major blemish on your record. It can make it difficult to get a good rate for a car loan or for other forms of credit. When it comes time to renew your existing loan, you may face subprime rates or even a rejection from your existing lender.
If you are in the redemption period, give one of the mortgage specialists at Amansad Financial a call. We have connected many distressed homeowners with private lending sources that have replaced entire mortgages, pulling them out of the mortgage process. If you’re behind in your mortgage but have not yet entered the redemption period, call us anyway. Our lender clients can help you bring your mortgage current so that you just end up with a modification, with just a few late payments on your credit report. Your financial health will be much more robust. Don’t let your current hard times wreck your financial future. Instead, be proactive and take charge of your difficult situation today.