What do you know about Foreclosure Laws?
Regulations relating to foreclosure differ by state, check your state statutes.
or visit www.foreclosures law.org
1. Notification of intent to foreclosures: 2. Nonjudicial foreclosure: 5. Military Service:
Many states require that a lender notify the borrower in advance (30 days, for example) before obtaining a court judgment to foreclosure.
Many states permit lenders to add a clause to a mortgage document that permits the lender to foreclosure and sell the property without obtaining court approval.
3. Deficiency Judgment:
Some states permit a lender that forecloses on a mortgage to file a judgment against the borrower entitling the lender to collect from the defaulted borrower any amount of the outstanding mortgage not covered by the sale price.
4. Right of Redemption:
Some states permit a defaulting borrower to satisfy the loan default and recover the property if done within a specified amount of time after the property is sold.
If the borrower or the borrower's spouse is on active military duty, the Civil Relief Act of 2003 prohibits a lender from foreclosing on the mortgage. In addition, the borrower may qualify for an interest rate reduction or even a temporary suspension of mortgage payments.
Additional help for borrowers can be found through the HOPE NOW
This new private sector program negotiated by the federal government should help borrowers with subprime adjustable rate loans that will reset in 2008/2009 avoid foreclosure. The voluntary plan encourages lenders to help qualified subprime borrowers refinance their loans into an FHA-insured or other more affordable mortgage without prepayment penalties. Lenders may also freeze the interest ARM products at the introductory rate for five years to assist borrowers who are unable to qualify refinancing. For more information go to www.hopenow.com
This information was obtained from an article on foreclosure laws published by realtor.org/realtormag - April 2008