Avoidance

A promissory note is like an IOU. A promissory note is a document that contains a borrower’s promise to repay the amount borrowed.

Mortgages and deeds of trust give the power to foreclose. A mortgage—or, in some states, a deed of trust—is the contract that gives the lender the right to sell the home through a process called foreclosure if the borrower doesn’t make payments on the loan. When the lender records this document in the land records, it creates a lien on the home.

Endorsements and assignments. Promissory notes are transferable, and banks often buy and sell home loans. When a loan changes hands, the promissory note is endorsed (signed over) to the new owner of the loan. The seller documents the transfer by recording an assignment of the mortgage or deed of trust in the land records.

Nonjudicial foreclosures- In a nonjudicial foreclosure, an attorney or trustee—again, on behalf of the lender or investor—completes certain out-of-court steps. Typically, a nonjudicial foreclosure involves one or more of the following steps, depending on state law:

• mailing the borrower a notice of default that tells how much time the borrower has to reinstate (get caught up on payments)
• recording the notice of default in the local land records office
• mailing the borrower a notice of sale that states when the property will be sold. Like in a judicial foreclosure, the property is usually sold at a public auction.

Depending on state laws, a borrower might get a combined notice of default and sale, a notice of sale, or notice by publication in a newspaper and posting on the property or in a public place.

What’s a redemption period? Certain states have laws giving a foreclosed homeowner the right to regain ownership of the home—called redeeming the property—after a foreclosure sale by reimbursing the buyer for the amount paid at the sale or by repaying the full amount of the mortgage debt.

What’s a deficiency judgment? Sometimes, a foreclosure sale doesn’t bring in enough money to fully repay the home loan. When this happens, the difference between the sale price and the amount owed is called a deficiency. In certain states, the foreclosing party can get a personal judgment—a deficiency judgment—against the borrower for this amount.

To learn more information and find out what will work in your particular case, please call us at 213-465-0936 or 323-532-2886.

A promissory note is like an IOU. A promissory note is a document that contains a borrower’s promise to repay the amount borrowed.

Mortgages and deeds of trust give the power to foreclose. A mortgage—or, in some states, a deed of trust—is the contract that gives the lender the right to sell the home through a process called foreclosure if the borrower doesn’t make payments on the loan. When the lender records this document in the land records, it creates a lien on the home.

Endorsements and assignments. Promissory notes are transferable, and banks often buy and sell home loans. When a loan changes hands, the promissory note is endorsed (signed over) to the new owner of the loan. The seller documents the transfer by recording an assignment of the mortgage or deed of trust in the land records.

Nonjudicial foreclosures- In a nonjudicial foreclosure, an attorney or trustee—again, on behalf of the lender or investor—completes certain out-of-court steps. Typically, a nonjudicial foreclosure involves one or more of the following steps, depending on state law:

• mailing the borrower a notice of default that tells how much time the borrower has to reinstate (get caught up on payments)
• recording the notice of default in the local land records office
• mailing the borrower a notice of sale that states when the property will be sold. Like in a judicial foreclosure, the property is usually sold at a public auction.

Depending on state laws, a borrower might get a combined notice of default and sale, a notice of sale, or notice by publication in a newspaper and posting on the property or in a public place.

What’s a redemption period? Certain states have laws giving a foreclosed homeowner the right to regain ownership of the home—called redeeming the property—after a foreclosure sale by reimbursing the buyer for the amount paid at the sale or by repaying the full amount of the mortgage debt.

What’s a deficiency judgment? Sometimes, a foreclosure sale doesn’t bring in enough money to fully repay the home loan. When this happens, the difference between the sale price and the amount owed is called a deficiency. In certain states, the foreclosing party can get a personal judgment—a deficiency judgment—against the borrower for this amount.

To learn more information and find out what will work in your particular case, please call us at 213-465-0936 or 323-532-2886.