5 Questions to Ask When Dealing with Foreclosure

Is your Tulsa home on the verge of being foreclosed? If so, you must be feeling a lot of different emotions. It can be stressful and overwhelming to deal with foreclosure. When you research foreclosures online to learn more information about them, you’ll find out a lot of scary stuff about what they can do to your credit score and financial well-being. However, there is still important information about foreclosures which very few websites will give you. The first thing you must do is learn to ask the proper questions about your foreclosure when talking to a lender or foreclosure adviser. If your trying to avoid foreclosure in Tulsa read below on the 5 main questions worth asking when dealing with a foreclosure.

1) What is the usual duration of foreclosure in my state?

You must research your specific state and find out more information about foreclosure durations in it. Some states have redemption periods while others don’t. Since each state has its own foreclosure laws, the answer to this question will be different for everyone.

2) Are there non-judicial or judicial foreclosures in my state?

Non-judicial foreclosures happen much faster because they don’t involve the lender taking you to court. Instead, the lender has the legal right to just foreclosure without the court’s approval. Fortunately, most states have judicial foreclosures.

3) Is there a “power of sale” clause in my mortgage agreement?

If this is a deed of trust foreclosure, then you can expect there to be a power of sale clause in the mortgage agreement. This clause dictates how the foreclosed property is advertised and sold. Ask your lender about whether the clause exists and what the terms are.

4) Is there a redemption period following a foreclosure?

Once a property has been foreclosed, there may be a redemption period allowed afterwards in your state. The redemption period is a specific amount of time after the foreclosure when you’re allowed to pay off the debt that you owe and recover ownership of the property.

5) Do deficiency judgements exist in my state?

When a foreclosed property is sold via a public auction or sale, it may sometimes sell for less of an amount than what is owed on it. This is called a deficiency judgment. If the bank was unable to recover all the money you owe on the house after they attempted to sell it at an auction, a deficiency judgment means that you’re still liable for the amount that wasn’t recovered from the sale.

Conclusion

It is worth asking all these questions to a foreclosure adviser or councelor. The more you learn about your foreclosure situation, the better chance you’ll have of making the right decisions from this point forward.