Q:

What should you expect from a foreclosure settlement?

A:

Quick Answer

A foreclosure settlement serves as a warning indicating the auction of your property due to your negligence in the payment of monthly dues. The settlement may state a final deadline for complete payment or give a date for your property's auction.

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Full Answer

A foreclosure settlement is sent by a financial institution that has been engaged by a person to finance their property. It is sent when there is a problem with the payment of the monthly dues owed to the institution.

The settlement is not the first thing the bank sends when there is a problem with your payments. It first sends a notice for default in payment of dues. This includes a reminder that you are behind on your payments and the amount you owe. Finally, it sends a foreclosure settlement when the bank feels that it has not been replied to properly. This symbolizes that the bank has started foreclosure proceedings against you. The settlement contains the details of the bank's attorney, contact information, general description of the property, and the final issue of a warning to pay all previously owed debts, stating that failure to comply results in an auction.

The auction is generally open to public, and the defaulter can also be a part. The local registrar can be the source of information as to the location of the auction.

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