Walk It Through: The Letter From The Lender
A notice of intention at least 30 days ahead, a cure up to final judgment, and redemption after a tax sale.
A homeowner falls behind on the mortgage after a layoff, and a certified letter arrives from the lender.
Two things a person in this spot might do. Picking one shows what the law says about it.
One house and one lender. Loss mitigation, loan modification, the federal servicing rules, what a redemption amount includes, and the notices a tax foreclosure needs are not worked through here.
A practice walkthrough, not a prediction of how any real one will go. Legal information, not legal advice.
Words this turns on
Terms with a legal meaning that is narrower than the everyday one. Each links to the definition and the authority behind it.
- Notice of intention to forecloseThe written notice, including a notice of the right to cure, that a residential mortgage lender gives the debtor by registered or certified mail at least 30 days, but not more than 180 days, before accelerating the loan and starting a foreclosure.
- Right to cureThe debtor's right, at any time up to the entry of final judgment, to cure the default, de-accelerate and reinstate the mortgage by paying the sums that would have been due without the default, late charges and the costs and fees the section allows.
- RedeemTo get collateral back by tendering fulfillment of all obligations it secures, plus the reasonable expenses and attorney's fees the Code describes. A debtor, a secondary obligor, or another secured party or lienholder may do it.
- Tax lien certificateThe certificate held on land sold for municipal taxes. The owner, the owner's heirs, a mortgagee, an occupant or the holder of a prior certificate may redeem the land at any time until the right to redeem has been cut off, by paying the collector the amount required.