Carrington Mortgage Services is one of the largest mortgage lenders in the United States. They offer a variety of mortgage loan programs, including government-backed loans such as FHA and VA loans, as well as fixed and adjustable rate loans. Unfortunately, like most mortgage lenders, they also have a foreclosure process that can be difficult to understand, especially if you are facing foreclosure.
What is Foreclosure?
Foreclosure is a legal process by which a lender takes ownership of a borrower’s property when the borrower has failed to make payments on their loan. The process begins when the borrower is delinquent on their loan payments. The lender will then send the borrower a notice of default, which is an official notification that they are in violation of the loan agreement and will begin the foreclosure process if the borrower does not catch up on their payments. The lender can also choose to accelerate the loan, which means that the full amount of the loan is due immediately.
The Carrington Mortgage Foreclosure Process
Once a borrower has been sent a notice of default, Carrington Mortgage will begin the foreclosure process. The first step is for the borrower to receive a Notice of Trustee Sale. This is a legal document that informs the borrower that their loan is in default and that the property is scheduled for a foreclosure sale. The borrower then has a certain amount of time to make up the past due payments and reinstate the loan or the property will be sold at a trustee sale.
The Trustee Sale
If the borrower is unable to make up the past due payments, the property will be sold at a trustee sale. The trustee sale is a public auction in which the highest bidder wins the deed to the property. The proceeds from the sale will be used to pay off the loan balance, any legal fees, and other associated costs. The borrower may still owe the lender the difference between the loan balance and the sale price.
Post-Sale Options for the Borrower
If the property is sold at the trustee sale, the borrower may still have some options to retain ownership of the home. The borrower can redeem the property by paying the full balance of the loan and any associated costs, or they may be able to negotiate a loan modification with the lender. If a loan modification is successful, the borrower may be able to keep their home.
What to Do if You are Facing Foreclosure
If you are facing foreclosure, it is important to act quickly. Contact Carrington Mortgage Services immediately to discuss your options. The sooner you start the process, the more likely you will be able to keep your home. Be sure to read all documents carefully and seek legal advice if you are unsure of anything. It is also important to remember that you have rights under foreclosure law and you should never sign anything that you do not fully understand.
Conclusion
The foreclosure process can be confusing and overwhelming. Carrington Mortgage Services offers a variety of loan programs, but they also have a foreclosure process that can be difficult to understand. By understanding the process, borrowers can make informed decisions and take the necessary steps to resolve their situation. Knowing your rights and being familiar with the process can help you have a better outcome.
