Borrowing money from a bank or a company or a person, generally in form of cash, is called a loan. But while giving away the loan, there is a legal agreement between the borrower and lender. The borrower has to give away the title of his property to the lender as a form of a guarantee or collateral for the loan.
After clearing out the loan by paying the principal amount with interest to the lender, the borrower can exercise his ‘Right of Redemption’ as per the Transfer of Property Act, 1882 in order to get back the possession of the property.
But if the borrower is not able to repay due to financial constraints and the payment is due, the lender can proceed with a legal process of selling or auctioning the property provided by the borrower as collateral. This legal process is called Foreclosure. Thus, the lender can exercise his ‘Right to Foreclosure’ by filing a suit.
Remedy for Foreclosure:
Even though it sounds like a big problem, the remedy for foreclosure is quite simple: filing a ‘Forbearance Agreement’ with the lender to delay the foreclosure.
Explaining their financial situation to the lender, one can seek a delay on foreclosure. Here, the lender is giving an opportunity to the borrower to stabilize his financial situation so that he can repay the loan later. It also needs to be understood that the agreement to grant forbearance rests with the lender and the circumstances are different for every case.
Foreclosure Forbearance Experts May Guide You:
Agreeing to grant forbearance depends completely on the lender. Thus, it is essential to explain the case to them properly.
At Loan Modification Depot (loanmoddepot.com), we have a team of experts to help you resolve the foreclosure issue. Every case is different depending on the circumstances. We offer customized solutions to make the forbearance feasible as well as smooth. Visit www.loanmoddepot.com for more info.