Website design By BotEap.com What is the Mortgage Replacement?

Website design By BotEap.comBy definition, a repayment of a mortgage is the restoration of a loan after the lender files a foreclosure against the borrower who never made the payments, even after the grace period granted. During the foreclosure process, the lender will deactivate the defaulted loan until a trustee sale. Prior to a trustee sale, the borrower may still reinstate the mortgage loan up to five days before the foreclosure auction.

Website design By BotEap.comTo get the mortgage restored, the borrower must bring their mortgage note up to date and pay only “good funds” for delinquencies, including other fees and charges. Upon receipt, the lender will return the loan to active status.

Website design By BotEap.comHowever, this happens under legal regulation. In most states, borrowers have the right to reinstate their mortgage prior to the trustee’s sale, such as California and Oregon. Unfortunately, borrowers who live in Georgia cannot reinstate their mortgage prior to the trustee’s sale.

Website design By BotEap.comForeclosure and right of repossession

Website design By BotEap.comIn a mortgage delinquency under a promissory note and deed of trust, the lender has the option of:

• Exercise the power of sale clause in the deed of trust and file a notice of foreclosure against the borrower on the trustee.
• Collect the promissory note, expedite the payment of the entire amount of the mortgage and start the judicial execution.

Website design By BotEap.comLenders generally prefer foreclosure via trustee sale because it is less expensive and hassle-free. As a borrower, you should know your legal rights when this happens. In fact, there is a refund law that applies to both options, so that:

Website design By BotEap.comUnder Section 33-813(A) of the Arizona Revised Statute, the borrower is obligated to pay only “the full amount due at that time…, apart from that part of the principal that would not be due if a default had not occurred.” …” That is, the borrower (trustor) can reinstate his mortgage (or settle the default under the note) by paying the lender only the late payment due, contrary to the belief that the borrower must pay the full amount of the loan to fix default and reinstate your mortgage.

Website design By BotEap.comAdditionally, Chapparral Development v. RMED intern, 170 Ariz. 309, 823 P.2d 1317 (App. 1991), the Arizona Court of Appeals ruled that under ARS Section 33-813(A), a borrower (trustor) has an absolute right to restitution of a mortgage regardless of whether a lender forecloses on the mortgage at the trustee’s decision. dirty or judicially. The difference is:

1. In foreclosure, the borrower’s right to repayment is cut off once a foreclosure action is filed and the borrower must pay the full amount owed on the promissory note.
2. In the context of a trust sale, the borrower may repay up to 5:00 pm the day before the auction date. However, your right to rehabilitate the mortgage will extinguish once the sale has been held.