Foreclosure is a judicial process in which the loan borrower is unable to make loan payments to the lender. As a result lender will be forced to seize the asset given as collateral to recover the remaining payment.
There is an agreed time limit in which the borrower has to pay the entire installment amount to the financial institution. According to the Section 67 of The Transfer Property Act, if the lender has failed to receive payments from the borrower then they have the right to take over the collateral. The process begins when the lender files a legal notice against defaulting borrower for missing the installments upto 6 consecutive months called as ‘Notice of Default’ or ‘Lis Pendens’. With the court conformity the property is auctioned on the specific date. The process of foreclosure begins with the following steps.
Getting quotation from the property
Tenders from public
Private treaty (Bank will serve as property owner in such cases)
The authorized person has to notify the public regarding auction or sale of property through newspaper. The article regarding the sale of property should necessarily be published in two leading newspapers with one in English and the other in regional language.
How can we stop foreclosure?
If you are dealing with the loan foreclosure, you should be aware of your legal rights. Under the Fair Debt Collection Practices Act (also known as the Consumer Credit Protection Act), you can intimate the court regarding any illegal method of debt collection.
You can meanwhile go for Personal Loan to stop loan foreclosure process.
Before applying for a Personal Loan it’s a good idea to work on your rest of the loan amount. Do some calculations to get some idea on your remaining Loan amount. If necessary speak to your lender regarding the due loan amount if you haven’t maintained any tracker for your loan amount.
Check your credit score to know if you are still eligible for Personal Loan.
Analyze your situation and depending on that decide if you want secured personal loan or unsecured personal loan.
If you have any other collateral which has a good value in the market you can still go for secured Personal Loan.
Know your financial condition and see how much interest you can pay for your new Loan.
Do your homework properly before applying for a new loan.
You can speak to one of our experts on Personal Loan by subscribing on octopusloan.com/ and know everything about your personal loan and how you can get it to stop foreclosure.
Before applying for a new Loan borrower must bear in mind that a new Loan is also a liability which you have to pay to the bank. If you are ready to pay for this second liability over your existing one then take a new personal Loan.