As with other grants and special mortgages, FHA loans may cost less, have much lower down payments, qualifying is much easier, and special help is available if finances become difficult and one feels the need to foreclose.
This means that - in a worst case scenario - the lender can foreclose on the property and take possession of the home if the individual who takes out the mortgage does not repay the funds in a satisfactory manner.
After the homeowner receives notice of intent to foreclose, there is a notice and waiting period designed to give the homeowner time to negotiate with the bank, or to prepare evidence for a court hearing.
While lenders do have the right to foreclose on homes if borrowers fail to make payments per the terms of the original agreement, in some cases a loan modification program might be a viable option.
First, her wardrobe designer claimed that her check from Braxton bounced, now her bank is looking to foreclose on her house because Braxton has failed to make over $12,000 in mortgage payments.