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Final Judgement of Foreclosure: What is it and How to avoid it

Once a foreclosure case has successfully been through court proceedings, a judge signs the final judgement. This provides the lender with the legal right to sell the property to regain any losses accrued from nonpayment. The final judgement lists all amounts that are owed on the property and a copy of the document is provided to the previous owner under the law.

The Process

Foreclosure proceedings begin when a complaint is filed for the property in the state of location. The case is reviewed by a judge and the borrower is asked if they want to contest the complaint. If the property loan has not been met and the foreclosure is not contested a final judgement can be determined. This includes the amount the property can be sold for and is based on the original loan amount. This includes the unpaid balance on the mortgage, fees for the foreclosure process, unpaid interest, tax liens, unpaid utility bills, and legal fees. Any lienholder can be listed within the final judgement provided they have filed suit. The auction price is usually equal to the final judgement.

The Auction

Once the final judgement has been issued, a thirty-day waiting period is generally required before the property can go to auction. Auction sales can be difficult because the sales price is not a reflection of the market value of the property. The starting bid is determined in the final judgement and a deposit of approximately ten percent is required. If the property is sold for an amount greater than the final judgement the property owner can claim the surplus. The original owner must pay the final judgement amount prior to the auction to reclaim the property.

Preventing A Final Judgement

Once a summons and complaint have been received the borrower should deny the allegations of the bank, respond to the complaint, and establish a defense. This slows down the foreclosure. A Suffolk County modification of loan can be submitted and if accepted and considered under review, a minimum of 37 days before the date of sale, federal rules prevent the sale from going through.

This does not ensure the bank will stop the sale of the property. The issue is when an application is considered complete, has numerous interpretations. A small problem with a Request for Mortgage Assistance can cause a mortgage servicer to deny the application as incomplete and refuse cancellation of the sale. If the date of sale is close there may not be enough time to make any necessary changes and the final judgement will go through.

Loan Modifications
A modification attorney Nassau County is necessary for a proper foreclosure defense in achieving a permanent solution. An experienced attorney can defend a borrower from foreclosure and make certain a loan modification is applied for, as quickly as possible. The minute a borrower realizes they require help an attorney should be contacted to provide assistance with the confusing process of foreclosure. Extensive knowledge is required to prevent a failure that could result in the permanent loss of a home. To know more, get in touch with us!