Nick Gottuso Affiliated Capital Partners: The Way Forclosure Works Pt 1 by Nick Gottuso
Nick Gottuso Affiliated Capital Partners points out that many foreclosure procedures tend to vary from state to state. The procedures are established by state statutes, by case law, and by local practice. Foreclosures are court proceedings in about half of the states. Nicholas Gottuso Affiliated Capital Partners has learned that in this process that the creditor first files a suit in a court located near the property. Unless the homeowner files an answer successfully contesting the foreclosure, a judgment is entered for the creditor. The home, Nick Gottuso Affiliated Capital Partners explains, is then sold under court supervision.
Nick Gottuso Affiliated Capital Partners has found that other states have “non-judicial” foreclosures. This is when creditors foreclose by simply advertising the home for sale, using a legal notice in a newspaper. If homeowners want to contest this type of foreclosure, a lawsuit must be filed and the court will need to be asked to stop the sale. Nick Gottuso Affiliated Capital Partners notes that sometimes if the homeowner wants the court to stop the foreclosure, the homeowner must file a bond to protect the creditor. Unless the homeowner initiates a court proceeding, there is no judicial involvement in such a foreclosure.
Some states actually allow both types of foreclosure, judicial and non-judicial. Practicality and local custom usually dictate a creditor’s choice of one type over the other.
When a homeowner first becomes worried about meeting mortgage payments, Nick Gottuso Affiliated Capital Partners recommend that a certain steps be taken to reduce the risk of foreclosure:
-Get Legal Advice. Homeowners threatened with foreclosure should immediately obtain legal help mainly because foreclosure is a harsh legal process. Possible sources of legal help are the neighborhood legal services office, a bar association panel of pro bono attorneys, or a program providing legal assistance for the elderly. Nicholas Gottuso Affiliated Capital Partners notes that a competent attorney can determine whether there are legal defenses to a foreclosure.
Homeowners too often either postpone consulting a lawyer until after the time to assert their legal rights has passed, or walk away from their homes, generally leaving themselves without any equity and vulnerable to deficiency claims. According to Nick Gottuso Affiliated Capital Partners, a counselor or lawyer must carefully evaluate the homeowners’ objectives and interests, for each foreclosure situation.
Nick Gottuso Affiliated Capital Partners stresses that homeowners should avoid “quick fix” attorneys who may advertise or solicit through the mail from published foreclosure lists. Many times these practitioners will push the homeowner to file a bankruptcy prematurely. A bankruptcy may be necessary at some point, but, as with many things, proper timing may be critical.
Make Sure to Keep Up on Home Payments. To avoid foreclosure, Nick Gottuso Affiliated Capital Partners suggests that the homeowner not pay credit card debts, doctor bills or other low priority debts ahead of home mortgage payments. Skipping payments on low priority debts for several months may have few bad consequences. Whereas skipping one or two home mortgage payments may subject the homeowner to loss of the home.
Apply for Income Maintenance, Tax Abatement and Public Assistance Programs. Benefits provided by government and non-profit agencies are a key source of assistance for individuals in financial distress. Nick Gottuso Affiliated Capital Partners is aware that these resources can help older homeowners free their income for home payments. For very low-income homeowners, particularly those who are recently widowed, advocates should also determine the homeowner’s eligibility for Supplemental Security Income.
Nick Gottuso Affiliated Capital Partners notes that the process of obtaining these benefits is often slow and difficult. When necessary, shepherd individuals through the bureaucratic maze, ensuring that application procedures are understood and that all documentation is properly assembled and delivered.
Negotiate with the Mortgage Company or Servicer. It may be very useful to ask the mortgage company to agree to a temporary or permanent change in the mortgage terms, commonly called a “workout.” As time goes on, more and more creditors are realizing that foreclosure is a losing proposition for the lender, and that they are better off keeping the consumer in the home making whatever payments the household can afford. Nick Gottuso Affiliated Capital Partners recalls that it is important to contact the lender early, as soon as the homeowner begins experiencing financial difficulties. Although consumers may attempt to arrange a workout on their own, it is best if they are assisted by an experienced attorney or mortgage counselor. If the loan is guaranteed by a federal or state funded agency, the lender may be required to provide certain assistance and options to the homeowner to try to avoid foreclosure.
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