Sep 5 2015 10392 1

Dated: 09/05/2015

Views: 674

OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

SATURDAY September 5, 2015

5 Foreclosure Laws You Need to Know

Regulations relating to foreclosure differ by state, so check your state’s statutes.

One place to start is a Web site such as www.foreclosurelaw.org.

1. Notification of intent to foreclose. Many states require that a lender notify the borrower in advance (30 days, for example) before obtaining a court judgment to foreclose.

2. Nonjudicial foreclosure. Many states permit lenders to add a clause to a mortgage document that permits the lender to foreclose 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 (New Jersey, for example) 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.

5. Military service. 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.

Don’t forget the HOPE Now Alliance. This new private-sector program negotiated by the federal government should help borrowers with subprime adjustable rate loans that will reset in 2008 or 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 on ARM products at the introductory rate for five years to assist borrowers who are unable to qualify for refinancing. For more information, go to www.hopenow.com.

RELATED CONTENT:  Know Your State Laws5 Papers You’ll Need to Renegotiate a Troubled MortgageCommon Agency Issues6 Questions Foreclosure Buyers Should AskAction on the Foreclosure FrontHelp Owners Stay Put

Want to Advertise on this Site?

Latest Blog Posts

Denver Real Estate 101 Workshop

Denver Real Estate 101Please join us for an informative workshop on Wednesday, September 27th, 2017 from 6PM - 7:30PM at the Ion Real Estate office. Ericka York of the Fairway Independent Mortgage

Read More

Everything You Need To Know About Colorado Real Estate

Everything You Know About Denver’s Real Estate Market Is Wrong Well, maybe not everything. But thanks to scant housing inventory, massive population growth, and still-low interest rates, buying

Read More

Aug 7 2017 40676 1

Good morning fellow Denverites!It's a rather soggy day here in the Mile-Hi City, but don't let that, interest rate increases, or inflation stop you from looking for your dream home or

Read More

Aug 2 2017 36392 1

I closed on my first house since I've been with Ion! What a wonderful day with a wonderful couple! Bryan and Kurstyn were so great to work with! And they have become my new friends! YAY!! I love

Read More