Foreclosure is a difficult situation to navigate and can be financially devastating. However, there are certain steps that you can take to avoid it, or pursue foreclosure redemption. Hiring legal representation to assist you through the process is a great first step to protecting yourself from the adverse effects of foreclosure. A legal representative can also help you to determine if redemption is possible in your case. In this blog post, we’ll be discussing what foreclosure is, the effects of it, what foreclosure redemption is, and how you can pursue it.
What is foreclosure?
Foreclosure can happen if you are unable to make your payments on time. It is important to note that a single late mortgage payment doesn’t necessarily make you eligible for foreclosure by the lender, but a chronic and recurring history of late or non-payment could put you at risk for foreclosure. Foreclosure is defined as the process of the lender reclaiming the house, which results in financial consequences and eviction.
What are the effects of foreclosure?
Foreclosure is not a desired outcome and comes with its own set of potential consequences. The main issue that foreclosure can cause for you financially relates to your credit, and the ability to secure any form of a credit-based loan. Because foreclosure results in your eviction from the property, this can be problematic when it comes time for you to secure your next form of housing. It will also deplete your credit score as well, further compounding the issue. The effects of foreclosure can extend to other areas of your financial lending landscape as well, including:
- Securing car loans
- Securing alternative lines of credit
- Resultant liens
- Securing stable living locations
- Securing student aid for continuing education
If you are dealing with the potential for late mortgage payments, we recommend letting your lender know as soon as possible. Sometimes, something as easy to do as communication can assist you in building your case, or in securing an alternative form of payment for your mortgage. You may be able to pay at a lesser secured rate for the duration of your difficulty, or your lender may be able to provide you with additional resources to help you make your payments.
What is foreclosure redemption?
Redemption in a foreclosure case offers you the ability to legally secure your home in the event of a foreclosure sale. You can take advantage of the homeowner’s right to redemption for up to six months in the state of Utah after the sale to the bidder at your foreclosure auction. This time period will vary by state, and your attorney can help you explore your next options if you are considering redeeming your foreclosure.
Redeeming your foreclosure is a great first step in repairing your credit and financial health, but it can still be seen on your credit report for up to 7 years, and cause your credit to dip, further complicating any attempt to get a loan or to make a large-scale purchase.
You may be wondering: How can you redeem a foreclosure?
State statutes may vary, but in most cases, the homeowner will have to pay off the total amount of the mortgage, along with any fees that occurred throughout the foreclosure process and period. This can be very difficult to do, which is why foreclosure redemption cases are not nearly as common as foreclosure cases. Regardless, if you have the ability to repay the entire mortgage amount through a private loan or some other form of financial assistance, your attorney will be able to help you navigate the proper filing procedures and administrative steps to petition the court for a redemption.
How to start foreclosure redemption in Utah
Considering foreclosure redemption in the state of Utah? Here are a few things you should do to prepare you for the process:
1. Secure your funds
Before pursuing any form of redemption, clarify the amount of the outstanding loan with the lender and secure your funds. You will want to collect every piece of documentation that you have regarding the sale, foreclosure process, and cash accumulated to help streamline your filing process at a later point in time.
2. Seek legal assistance
Secure an experienced real estate attorney to help you navigate the process with confidence. They will be able to answer any state-specific or legal questions that you may have involving the repurchase or the filing process and can assist you in the court hearing and administrative process for redemption.
Ascent law can help with foreclosure redemption in Utah
Seeking foreclosure redemption in Utah? The experts at Ascent Law are here to help. Our legal team has had years of success and experience in dealing with foreclosure requests and is ready to help you navigate the process. To book your free intro call and begin receiving legal assistance, please contact our office at (801) 432-8682.