Can a Mortgage Business Take Bank Assets for Foreclosure?

Distressed homeowners might fall behind on their mortgage obligations due to job losses, costly medical bills or for lack of renters. From there, the home enters foreclosure. Identify mortgage loan structure in order to familiarize yourself with significant consumer rights. Mortgage firms can’t make promises over personal bank assets. Bank balances, but do influence your ability to negotiate deals with lenders before foreclosure.


Property serves as the sole collateral to rear, or protected, mortgages. Banks evaluate your entire net worth when making approval decisions for mortgage loans. Private assets might consist of banking reserves, stocks, mutual funds and personal businesses. These things help lenders gauge your ability to make housing payments. Beyond your home itself, personal assets can’t be pledged as loan collateral.


Lenders may foreclose on, or seize, land as reimbursement for mortgage default. Loan default describes situations where borrowers violate any details of the mortgage agreement. Technically, the home loan drops to default if a creditor has not obtained a complete mortgage payment from the due date. Mortgages normally allow for a 15-day grace period for borrowers to make payments after the given date. Default status would then start, as the grace period expires.


After default, banks often delay foreclosure proceedings for many months, in order to negotiate deals with distressed homeowners. Creditors are willing to restructure, or modify, loans since foreclosures translate into big losses for banks. The foreclosure process requires banks to pay expensive legal fees and auction off homes at cheap rates. Most importantly, the bank may lose out on 30 years’ worth of mortgage income. In response to the 2007-2009 housing crisis, government officials set up the Building House Affordable application to further stabilize the banking sector through loan alterations. Bank and government-sponsored loan modification programs extend permanent combinations of reduced rates of interest and principal balances over existing mortgages. These conditions are intended to help troubled homeowners make obligations and stave off foreclosure. To be eligible, banking government will examine your payment history and present financial strength. Be informed that you will be deemed ineligible for loan modification due to large bank balances and investment holdings. The lender will then dictate you to apply these tools to the mortgage, so it might stay current.


When owning property, you should compile 6 weeks’ worth of living expenses in cash reserves to handle financial risks and avoid foreclosure. In a crisis, proactively contact your creditor and alert the firm of any possible difficulties making payments. The bank will be more prepared to negotiate deals that allow you to maintain the home before you have defaulted than after. If you avoid communicating with your lender, it will not have any option but to foreclose, and you might find the local sheriff serving you with an eviction notice.


Do not presume that property can be sold quickly to pay off the mortgage in a profit. In recession, homes can languish on the market for many months, if not decades, before buyers emerge. Negative equity is also an opportunity, where your home is worth less than its true mortgage balance. Sometimes creditors will accept your selling the home for less than it’s worth, called a short sale, in order to prevent foreclosure.

See related


What's a Pre-Foreclosure Home?

A pre-foreclosure property has a delinquent loan and the owner is in imminent danger of losing his house because of foreclosure. His property was listed as delinquent and will shortly be taken into the custody of the lending company. Buyers may be able to obtain a pre-foreclosure for 40 percent less than the home’s market value, and the deal would shut faster than would a foreclosure. The competition for the house may be fierce, though, and the home is sold in”as is” condition.


A pre-foreclosure home’s loan is in default. The defaulted loan was listed in public records, starting the pre-foreclosure procedure. This procedure lasts from 90 days to 10 months or more and culminates with a public residency or auction sale. The pre-foreclosure period goes fast and the vendor will be motivated to sell. The seller needs to sell the property prior to the foreclosure procedure is complete or he loses control of their property. A pre-foreclosure deal occurs between a purchaser and a seller, but the lender needs to approve the buyer’s offer.


Buyers, sellers and lenders benefit from a pre-foreclosure deal. The seller is able to get rid of her unaffordable property without suffering from the charge damage of a foreclosure. A purchaser may be able to obtain the property for below market price. The lender benefits when the loan is acquired by a more financially stable buyer. Having a pre-foreclosure property, a purchaser is able to inspect the property until she makes an offer. At foreclosure auctions, this may not be possible.


Buying a pre-foreclosure property may take longer that purchasing a traditional property. The lender’s approval is essential for the purchasing process to begin. Pre-foreclosed homes may come with liens and unpaid taxes, which the new owner will be responsible for paying. Title searches will disclose any liens on the property. Pre-foreclosed homes may be in bad condition. Prior to buying a pre-foreclosed home, a buyer may want to think about how much it will cost to make repairs on the house. If he plans to quickly resell the home for a profit, he may want to consider that expensive repairs will quickly diminish his profit margin.


If a purchaser possesses basic home repair abilities, she has the potential to purchase a pre-foreclosure property inexpensively, fix it up and resell the house for a comfortable profit. The home does not have to be in bad shape to do this. By adding desired amenities and curb appeal to a decent pre-foreclosure house in a wonderful area, the purchaser can increase the home’s value and resell it at above market value. Pre-foreclosure earnings are better for creditors than foreclosures, so they want to close on the deal quickly. A purchaser may be able to negotiate lower closing costs, down payments and mortgage prices on a pre-foreclosure property than he would on a traditional sale.

Beginning the Buying Process

1 method to locate pre-foreclosures is to read default listings. When a purchaser locates a property of curiosity, she is able to contact the homeowner directly. If the homeowner has listed the property for sale, the purchaser contacts the listing agent. Realty Trac suggests contacting the homeowner by email with a postcard first, allowing him know you’re interested in purchasing the home and working out favorable conditions. After this, the purchaser or her real estate agent may try to speak to the homeowner in person or by telephone. A real estate agent can assist the buyer through the whole purchasing procedure.

See related


How Can I Fix Sale Credit?

A short sale has the exact same impact as a foreclosure. When the bank or lender reports your short sale to the credit bureaus, they generally treat the foreclosure as well as the short sale as a delinquency. The credit bureaus, in turn, submit their data to Fair Isaac & Business, the people that compile the FICO score from your credit bureau records. FICO makes no distinction between foreclosures, short sales and deeds-in-lieu of foreclosure. In fact, they lump them all together and treat them accounts”not paid as agreed” Fixing your credit after a sale will take time and discipline.

Pay your bills on time. FICO weighs recent credit history over ago, so a year or two of on-time payments might help erase a past filled with late payments.

Maintain low charge card balances. This raises your available credit amount, which helps you appear to have disposable income enough to take on more debt.

Keep old charge cards with great payment histories open. Should you have to close credit card accounts, then shut the newer ones.

Utilize the credit cards sparingly, but do utilize them. Make certain that you can cover the purchases through the next billing cycle. This will help construct a history of payments.

See related


How a Second Amendment Works

A second mortgage is a loan based on the equity an owner has built up in his house since he’s made payments on his principal mortgage. It’s a way to use your house’s worth to borrow a large sum, with the house itself as security. Equity is the amount of money your house is valued at over the mortgaged amount. This puts a limitation on how much you can borrow using another mortgage, but for most homeowners it may still be a substantial source of capital.

Figure out the total amount of equity you have in your home. Subtract the amount you owe on your principal mortgage from the appraised home worth as of your last property tax or personal appraisal. This outcome is your home equity. It is the maximum amount you can borrow using a mortgage.

Locate a lender who deals in home-equity loans, another term for second mortgages. Start your search with your current lender or the lender who holds your principal mortgage.

Find out the sum against equity the lender is prepared to lend you. Many lenders will lend just a proportion of the available equity to avoid a loss should your house collapse in value. In case of a default due to non-payment to either the principal mortgage lender or the secondary lender, the principal mortgage is paid initially, followed by the next mortgage. That is why it’s important to the lender that the actual equity in the house at default is sufficient to pay for the loan.

Determine the best loan conditions for the next mortgage. Pick between fixed-rate payments that remain consistent over the life span of the loan and adjustable-rate payments that change according to market conditions. Ensure that you can afford adjustable-rate payments if they rise significantly before. The interest rates are generally higher on second mortgages compared to mortgages due to the higher danger from non-refundable due to changing home worth.

Prepare the loan repayment provisions with the lender. Produce a payment system that suits your requirements. Choose a standard loan payment in one lump sum should you want a great deal of money immediately. This determines a payment program that is easy to follow and expect. Proceed with a revolving line of credit if your requirement for those funds extends over a long period or if you’re unsure of the total sum required. The line of credit lets you withdraw money against your house equity, with payments being based on the amount withdrawn rather that the maximum worth of this loan.

Shop around to find the best rates and loan conditions possible. A lender other than your principal mortgage holder may require a new appraisal before providing you with the loan.

Apply to your next mortgage with your favorite lender. Provide any financial advice required and go through the new appraisal if necessary. Wait for the next mortgage to close. You will want to cover closing costs, but they will be lower compared to those of a primary mortgage, since there’s less legwork in collecting background information. And the principal mortgage holder did the title search.

If your loan is approved and you receive the cash your the lender will put a lien against the house for the loan amount.

See related


Guest Picks: Colorful Home Accents for Fall

As the new season sets begin to roll into shops throughout the world (can it be actually almost September?) , I have trawled through a few of my favorite online shops to pick my top vibrant home accessories in the first autumn catalogs. I would be lying if I said I did not love these pieces, but my top three have to be the mint muffin tin, stripe cups and quirky doors cushion. Tell me, what has you reaching for your credit card this season? — Can from Bright.Bazaar

West Elm

Kantha Diagonal Stripe Pillow Cover – $24

West Elm’s textiles rarely disappoint, and the forthcoming season’s offerings look set to keep this fashion. These and colored stripe designs are my favorite.


Kitchen Utensil Jar – $68

I believe I want this utensil jar to store all my kitchen bits in style!


Clarissa Hulse Demeter Hot Pink Drum Shade – GBP 55

Clarissa Hulse brings her signature layout to a silk drum shade. I really like the pink and orange colors.

Resaro Muffin Tin – GBP 32

Mint is my color of the minute, therefore this muffin tin from Anthropologie set captured my eye right away.


Heal’s Discovers Woodland Cushion – GBP 75

With autumn on the way, this leaf pillow feels perfectly seasonal — not to mention ideal for Growing gray autumnal days.


Alto Red 32L Bin – GBP 35

Bins do not have to be boring! I love this traditional-style bin got a hot tomato-red upgrade .


In The Woods Salt Bird – GBP 22

The pop of yellow inside this salt bird leaves it all the more interesting.

Castle and Matters

I Come From A Land Down Under – AUD 500

I really like that this wall hanging is part of a series of functions from Aussie Castle.

Castle and Matters

Mahon&Band Train Pillowcase – AUD 59

I believe this simple yet bright pillowcase would be ideal for a small boy’s room.


Kilo Green Occasional Table – GBP 25

If you are not a fan of autumn, then why not think ahead to spring with a jolt of fresh green within this table?


Acorns and Leaves Tea Towel – GBP 11

Donna Wilson has brought her quirky signature fashion to tea towels. I adore this autumnal pattern.

Bubbled Glass Cone Pendant – GBP 680

I believe this ring will be ideal for a room that requires a subtle inclusion to color.


Terra Yellow Rectangular Baking Dish – GBP 15

I like that this rustic baking dish is made in Portugal, like I used to holiday there as a child. I remember loving all the pottery shops.


Doors Cushion Cover – $48

I’ve got a fascination with interesting doorways, and I am eternally snapping photographs of them together with my camera. This pillow from Leif is ideal for me.

West Elm

Potter’s Workshop Mug, Blue Dash – $10

I enjoy the delicate patterns which were hand-painted onto these tableware pieces in China.


Double-Striped Cups – $14

A very simple addition of color (preferably in a stripe) is exactly what makes me more happy. So obviously, these cups from Terrain are a few of my favorite picks of the new season.


Clockwork Orange Canvas – GBP 90

This picture poster canvas is a quick and effortless way to add color to your home this season.

West Elm

Ombr̩ Dye Rug, Midnight Р$129

The ombré trend looks set to stick around for another season as shown by this midnight blue carpet in West Elm’s brand new collection.

Cath Kidston USA

Dotty Milk Jug – $10

Cath Kidston’s scatter pattern never fails to charm!

More: Confident Shade: When to Use Cool and Warm Hues

See related


Guest Groups: Petrified Wood

Petrified wood is the newest decorating accent of choice and full blown obsession! The polished earth tones add a rustic yet stylish look to any area, and they can work for you whether your taste leans toward the modern, the conventional or somewhere in between.
“Petrified” comes from the Greek word for stone or stone, so petrified wood literally means “wood turned into rock” It is the fossilized remains of early plant which has gone through “permineralization,” a fancy term for all of the organic materials being replaced with minerals such as silica or quartz. But I’ll skip the remainder of the biology lesson.

Everything you really need to be aware of is that rarified timber is stunning when compared to a delicate sheen, mingling the warmth of timber with the depth and marbling of stone. The heavy material is the best souvenir of ancient times, and that doesn’t want that in their residence? Talk about a conversation piece.

Check out these petrified items, from budget friendly to uberluxe, and determine how they have been artfully used everywhere from living rooms to kitchens. — Lani from Mon Petit Chou Chou

Woodmeister Master Builders

A fireplace that is petrified? Be still my heart!
I just used rock around my hearth (I opted for green soapstone), but wish I’d known this was an option. Wowsa! I can not even manage the driftwood mantel.

Agate Designs

Petrified Wood Table With Stand

This petrified wood table is the best accent in any room. I utilize tree trunk end tables as plant stands to exhibit vases or pottery. My favourite one sits between 2 club chairs in my living room and retains a bronze ceramic owl.

Agate Designs

Petrified Wood Bookends

Petrified wood book ends add a splash of erudite colour to any bookshelf and immediately make the books they sandwich seem oh-so proper.

One Kings Lane

Petrified Wood Side Table

Contemporary metal legs to get an early topper — exactly what a juxtaposition!

The Loaded Trunk

Petrified Wood Cheese Tray, Large – $137

Add immediate pizzazz to your cocktail hour with this dish dish. You’ll certainly keep folks guessing exactly what your serveware is constructed of.

Bliss Design

I am swooning over this room. I’ve a Tudor and desire for contemporary renovations, so I am constantly looking for inspired ideas to borrow for my space.
The cherry on top of this stunning room is your petrified wood in the center of this console table, mais oui!

Bliss Design

Here is a closer look at this stunning room and its own petrified centerpiece.


Petrified Wood Trivet – $48

I already have this and enjoy it. It can be used as a trivet, cheese tray, plant stand, vase stand — whatever you can dream up. I keep finding so many uses for it. I will be in Anthropologie soon to pick up a few more.


Petrified Wood Bookends – $148

This impartial set of wrought wood bookends would work perfectly to dress up a background or cubicle.


Petrified Wood Stool

I’d really like to utilize these stools around a formal dining table, however they’d be equally divine at a rustic skillet. While off duty in the table, use one around the house for a step stool or accent piece.

Matthew Studios

Galvin Table

The stunning Galvin side table oozes refined glamour.
Do not you want to wake up to this daily? In a pair, they’d create the ideal nightstands and royal perches for alarm clocks.


Medium Petrified Wood On Stand – $537.50

Create a row of them on a windowsill, over a headboard or as a backdrop for some framed photographs. There are infinite possibilities for timber as art.


Petrified Wood Modern Rustic Forest Lamp

This lamp will be at home in almost any room of my er, your house.
It is a completely new spin on impartial and an excellent update for the everyday, plain, white lighting fixture.


Table Lamp with Petrified Wood Base – $925

This petrified wood lamp base is unique, keeping the organic finish instead of being honed. Soft tones and a rough finish work together beautifully here.

John Lum Architecture, Inc.. AIA

I often struggle with making industrial spaces look warm. This kitchen accomplishes this balance perfectly, with assorted wood stools, branches and a stunning petrified bench to add texture and colour.

Hudson Furniture, Inc..

Petrified Wood Console

Hudson Furniture is the purveyor of petrified wood in New York City. Nobody does it better than these, and you can be certain that the wood bought from them was sustainably sourced.

Hudson Furniture, Inc..

Petrified Wood Coffee Table

This is an ultra trendy coffee table out of Hudson. It’s completely carbon-dated chic!

Petrified wood takes the tree trunk end table trend and ratchets it up a notch in this timeless living room.
I’ve tree trunk tables across my house however constantly worry about beverage rings and stains — but they’d not a variable if they were petrified! It may be time for me to consult with my husband about a few upgrades.

Hudson Furniture, Inc..

Petrified Wood Stump 11-11-034

This is the traditional petrified accent table or feces from Hudson Furniture. I love the skunk series in this one. The attractiveness of these organic creations is that no two are alike.

Madagascar Minerals

Petrified Wood Tile – $324

Petrified tile provides you the warm feeling of wood with none of the maintenance. I see this operating in rustic cabins, urban penthouses and everything in between.

Wira Djadie Naturalstone

Mozaik Interlock Petrified Wood Tile

This multicolored, multitextured petrified tile will result in a stunning backsplash.
The neutral spectrum is covered here, making coordination between cupboards, countertops and fittings a snap.

Madagascar Minerals

Petrified Wood Sink – $6,999

Is not this just the ultimate? It is the most decadent bathroom sink I’ve ever seen and by far the most creative use of petrified wood I’ve come across.

Madagascar Minerals

Petrified Wood Sink – $6,999

These countertops really just go to prove that you can use petrified wood artfully and tastefully in almost any area of your house.

And last but not least, here is my own petrified trivet (bought from Anthropologie) employed as plant stand beneath my dining room table. This is the buy that started it all.

Next: On Trend: Wood Tiles

See related


Guest Picks: 20 Stylish Table Lamps Under $200

Table lamps are essential in creating ambience in a room, and, like paint, they could instantly alter the feel of a room. They can also be expensive! In this ideabook, I am sharing a few of my favourite sources and styles for table lamps under $200. — Julieann out of CreateGirl and Jace Interiors

Pottery Barn

Serena Antique Mercury Glass Lamp Bases – $100

I love the combination of a mercury glass base using a burlap colour. It connects both casual and vintage design in 1 lamp.


Eleanor Table Lamp – $179

You can’t ever go wrong using an easy round table lamp along with a crisp white shade.


Merie Table Lamp – $199

This lamp in its smoky blue is the best transitional color, and it could be used in several rooms as time passes.

Colors of Light

Silver Ringlet Table Lamp – $199

Interwoven silver ringlets create this extra large base seem smaller and lighter than it actually is.

The Business Store

Belly Table Lamp – $119

The Belly lamp is a very popular style at this time, and it is offered in just about every color of the rainbow.

Serena & Lily

Hammered Metal Lamp, Scallop

Whether an exotic texture would fit your room strategy better, start looking for hammered-metal bases like this one from Serena & Lily.

Lamps Plus

Robert Abbey Genie Brass and Plum Ceramic Table Lamp – $184.91

As I am looking for inexpensive lamps, I like to find an interesting shade shape. The empire design has always been a favorite of mineas it adds some elegance.

Euro Style Lighting

White Drum Shade, Double Gourd, Slate Blue Ceramic Table Lamp – $137.98

Gourd-shaped lamps seem to be anywhere now, but I like this model for the added grosgrain ribbon detail about the colour. The slate blue color would work perfectly in any room from a nursery to an office.

Eclectic Table Lamps – $195

If you’re seeking a lamp using a little more movement, there are lots of patterned bases out there. I love this Jonathan Adler Carnaby Waves lamp. It’s really enjoyable!


Meena Table Lamp – $217

Carolyn Kinder consistently pairs the most interesting bases with sophisticated shades.

Lamps Plus

Triple Gourd Clear Glass Table Lamp – $139.99

Lamps Plus is one of my go-to sources when searching for lamps for clients — the cost is always just right! This glass, triple gourd production is perfect for casual and traditional settings.


Robert Abbey Isis Table Lamp – $181.50

The Isis lamp is an excellent option since it’s offered in 20 colors and contains a three-way socket. Robert Abbey is just another one of my favorite lighting manufacturers since it consistently offers interesting base contours.

Lamps Plus

Possini Spiral Sea Mosaic Tile Table Lamp – $199.99

On occasion a solid lamp base just is not going to do the trick. In such instances start looking for a base that’s dimensional and contains a lot of detail, like this mosaic tile alternative.

Colors of Light

Glazed Ceramic Ring Table Lamp – $199

This unique lamp base functions to be an interesting piece of artwork that can double as a great focal point for a sweet reading corner or foyer table.

Lamps Plus

Santorini Stripes Accent Lamp – $187.91

Mary McDonald does chevron like nobody else! Having a sharp white parchment shade, this lamp could make an impression in any room.

Layla Grayce

Regina Andrew Lighting Aqua Glass Ripple Lamp – $198

The aqua glass of this table lamp is amazing with a ripple layout.

Layla Grayce

Arteriors Verona Opal Glass Table Lamp – $168

Textured bases like this one with dimples can be subtle but nevertheless add effect to a room.

Zinc Door

Jamie Young St. Croix Mercury Glass Small Table Lamp Base, Plum Linen Shade – $265

You can even add a vibrant colour to a solid base. This St. Croix lamp base using a plum-colored linen shade is one of my favorites!

Lamps Plus

Platinum Grey Dupioni Clear Glass Vase Table Lamp – $144.98

This gray Dupioni silk shade with a clear glass base would add a great dose of elegance to many room styles.

Layla Grayce

Jamie Young Lighting Lamp Base, Low Country Lee Urn, Natural – $415

I love this zebra-print linen shade on the Jamie Young lamp, but it is a cheat since it’s out of my 200 budget! Take a peek at the next picture for my answer.

Euro Style Lighting

Blue Scroll Canvas Drum Shade – $49.99

An inexpensive way to upgrade an present lamp base is to swap out the colour. This cotton cloth shade with a royal blue scroll pattern could provide new life to a to any lamp base.

Euro Style Lighting

Camel and Cream Ikat Lamp Shade – $74.91

If you would like to get in about the ikat fashion, shifting out your colour for this alternative is a simple way to upgrade your room.

More: 15 Creative Lamp Bases

See related