Foreclosure Laws in California

Generally, it is agreed upon that California has one of the most complicated, yet consumer friendly foreclosure laws in the United States.

Titles Vs Liens
California is a title state, which means the lender holds the title through what is known as a Deed of Trust. Many lenders in California often include a power of sale clause, which means the borrower has the right to sell the property to pay for outstanding debt on it in the event payments fall behind. Like many title states, California generally follows non-judicial foreclosure procedures in the event a mortgage goes into default.

When the power of sale clause is used, this is usually satisfied though an auction via a trustee usually appointed by title companies. Power of sale clauses must also pre-exist before the borrower can opt to sell a foreclosed home or one in danger of foreclosure. In the event that the clause does not exist, the matter then becomes a judicial foreclosure.

In the event of the deed of trust lacking a power of sale, complaints are filed in county courts by the lender along with a lis pendens.

Notice Requirements
If you are thinking of buying foreclosed homes in California, do your research. California has one of the strictest borrower notice requirements in the USA. Not only should the borrower receive a notice of default, but a redemption period where the borrower can scramble to make payments if they can must be satisfied. This can take up to 60 days. A publication period must also be satisfied where the property and all pertinent information must be made available to the public before a sale can occur.

Borrowers are also required to receive a 20-day notice before sales can occur, it must be mailed and posted in a public place before the sale can occur. Non-compliance for any of the conditions can nullify any purchase at auction. This is to give borrowers time to recover their property by paying the debt before the auction occurs. They have up to five days before the sale, and an additional clause to postpone a sale for one day.

Sale Requirements
Sales must also occur in the area that the notice of sale was registered in for them to be valid. Foreclosures may also be averted if the property holder files for bankruptcy during the foreclosure period.

Once the sale is complete, the borrower also has up to one year to take advantage of a right of redemption via a full payment plus any loan costs or fees. If the full payment for the price bid is paid by a lender or buyer this period becomes three months. The borrower also has up to 90 days from notice of default to cough up the payments and fees. Specific clauses also prevent right of redemption in certain scenarios, such as in the event of deficiency judgments.

The California foreclosure process takes up to 120 days, more if the borrower contests. Judicial foreclosures take longer in order to satisfy any periods needed by both the seller or the property owner.

Colorado Foreclosure Laws – Can Latest Colorado State Foreclosure Laws Save Your Home?

Colorado Foreclosure laws main objective is to give a basic idea of foreclosure law for the region. These laws vary from state to state. Similarly, Colorado’s laws are designed to help the lenders whom mortgages are becoming delinquent day by day due to non payment and as well as for borrowers by providing them a platform to save their home.

Here are Colorado State Foreclosure Laws:

1. Colorado Judicial Foreclosure Law– If no power of sale clause is mentioned in the mortgage agreement, the lender can file a lawsuit in the court of judgment to get on official order to get your mortgage foreclosed. As and when the Colorado state court issues the order, your mortgage is set for auction and whatever the amount is fixed as the highest bid, the property is sold on that price and the bank uses the amount to foreclose your loan.

2. Colorado Non Judicial Foreclosure Law – Non judicial process is a bit different. A public trustee or a firm is appointed to act on the behalf of your lender, to handle a power of sale of foreclosure.

In this foreclosure law:

· This lender informs the attorney or the lawyer about the mortgage on which payments are delinquent. Now the attorney will file all the desired documents in the public trustee office of the same area where the mortgage property is situated.

· A notice of “election and demand” is filed with the area clerk and recorder’s office by the public trustee. After filing of the notice, the notice is published in the daily newspaper of the region of the property’s location for continuous 5 weeks.

· If the borrower gives no response, the property sale will start and it must be sold off in between 45-60 days after the notice of election and demand for sale has been filed. The trustee can approach any courthouse for the sale.

3. The whole process takes up to 145 days and this time can exceed too depending upon the case.

4. The fourth foreclosure law is right of redemption by which you can save your home

· You can redeem your property. You can file a letter of “intent to cure” with the trustee, 15 days before the sale of the property has to take place. You will have to make all the pending dues on the mortgage to make it current, and you can pay all the money by the afternoon of the day before the sale is to take place.

· Secondly you can also save your home after the sale. Colorado foreclosure law gives you 75 days after to pay off the entire sale amount with the interest to buy back your property.

Foreclosure Law

Even if you have suspected that your home would go into foreclosure, perhaps you were misinformed and believed you had to wait until you received a notice of default from your lender before you could do anything. Maybe even now that you have received the notice, you are still stunned and paralyzed with the fear of losing your home.

No matter what your situation may be at the moment, if you have just received a notice of default and are facing a foreclosure, now is an excellent time to get started on understanding the foreclosure laws that apply to your particular situation and to begin seeking help from professionals who can help to end foreclosure proceedings against your home and restore your home loan to a proper state of payment. Most importantly, you can achieve a peace of mind and return to sleeping at nights knowing that your home is not in jeopardy of being taken from you.

It cannot be overstated that foreclosure law is different from state to state. For example time frames for each state are as follows:

Alabama: 49-74, Alaska: 105, Arizona: 90+, Arkansas: 70, California: 117, Colorado: 145, Connecticut: 62, Delaware: 170-210, District of Columbia: 47, Florida: 135, Georgia: 37, Hawaii: 220, Idaho: 150, Illinois: 300, Indiana: 261, Iowa: 160, Kansas: 130, Kentucky: 147, Louisiana: 180, Maine: 240, Maryland: 46, Massachusetts: 75, Michigan: 60, Minnesota: 90-100, Mississippi: 90, Missouri: 60, Montana: 150, Nebraska: 142, Nevada: 116, New Hampshire: 59, new Jersey: 270, New Mexico: 180, New York: 445, North Carolina: 110, North Dakota: 150, Ohio: 217, Oklahoma: 186, Oregon: 150, Pennsylvania: 270, Rhode Island: 62, South Carolina: 150, South Dakota: 150, Tennessee: 40-45, Texas: 27, Utah: 142, Vermont: 95, Virginia: 45, Washington: 135, West Virginia: 60-90, Wisconsin: 290 and Wyoming: 60.

Just as each state has a different time frame, the laws that govern the particular state are different from the next state as well. There is no way to list all of the different laws that are applicable in their respective states. Even if it were possible to list all of the laws here, it would be impossible to keep the listing current as laws can change from state to state and year to year, depending on the state’s government and legislation.

Both judicial and non judicial forms of foreclosure regulations are used from state to state. Likewise, the sale publication and redemption period can vary, including some states where the court decides what the redemption period will be. There are many different web sites that offer some general information about foreclosure law for each state. These sites should not substitute for learning about the foreclosure law in the state applicable where the property is that you are concerned with.

Although foreclosure is a lender option to allow the lender to gain back the property or cash for the property, foreclosure law is designed to help the homeowner take advantage of the opportunities that exist with foreclosure time frames and various other laws within each state that work to help the homeowner stop foreclosure before losing their home. 

Summary Of Vermont State Foreclosure Law

There are four different type of foreclosure are followed in Vermont.

Strict foreclosure

Power of sale foreclosure

Judicial foreclosure

Non-Judicial foreclosure

What is the processing period for foreclosure in Vermont?

Processing period is normally 210 days (Approximately 7 months) in Vermont.

Is there any right of redemption in Vermont for foreclosure?

Yes, Vermont offers a right of redemption.

Are deficiency judgments permitted in Vermont?

Deficiency judgments are permitted in Vermont.

Which law provision governs foreclosure in Vermont?

They are found in Vermont Statutes, Title 12 (Court Procedure), Part 9 (Particular Proceedings), Chapter 163 (Chancery Proceedings), Subchapter 6 (Foreclosure of Mortgages)

What happens during Strict Foreclosure in Vermont?

In this type of foreclosure, the lender owns full right of the property, till the loan is paid fully. If the borrower breaks any condition, he or she loses all the right in the said property and lender can put up the property for sale. But before taking such action, a suit must be filed in the county office where property is located. The borrower is instructed to appear in court and informed of his rights, at which time the lender may move for a summary judgment and avoid the trial altogether. In this type of foreclosure, the borrower gets a redemption period either of six months (post-1968 mortgages) or 12 months (pre-1968 mortgages).

What happens during Power of sale foreclosure in Vermont?

In this type of foreclosure, foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. This foreclosure can be done judicially or non-judicially, depending on the type of property in deed of trust/mortgage.

What happens during Judicial Foreclosure in Vermont?

In this, the lender needs to file complaint against the borrower and obtain decree of sale from the county court where property is located. Generally this type of foreclosure takes place when the property includes a dwelling of two units or less and the owner is using property as main residence. The sale of such property can not be held until the 7 months after the decree of sale has been issued.

What happens during Non-Judicial Foreclosure in Vermont?

Non-judicial foreclosure is conducted only when power of sale is contained in mortgage related to property excluding for a dwelling house of two units or less and it is occupied by the owner as main residence. The lender may use the power of sale without first commencing a foreclosure action or obtaining a foreclosure decree.

Guidelines for power of sale

The lender must send notice with intention for foreclosure to the borrower at least 30 days before the publication of sale notice and it should be sent by certified mail. The notice should have information on property to be foreclosed, state the condition breached and lenders right to accelerate the mortgage and include the total amount necessary to prevent the foreclosure.

The borrower may receive the sale of notice 60 days before the schedule date of the sale. The sale should occur at property itself and any surplus money should be given to the borrower.
However if the property is sold without intervention of court, the notice must include the following language.

“The mortgagor is hereby notified that at any time before the foreclosure sale, the mortgagor has a right to petition the superior court for the county in which the mortgaged premises are situated, with service upon the mortgagee, and upon such bond as the court may require, to enjoin the scheduled foreclosure sale. Failure to institute such petition and complete service upon the foreclosing party, or their agent, conducting the sale prior to sale shall thereafter bar any action or right of action of the mortgagor based on the validity of the foreclosure, the right of the mortgage holder to conduct the foreclosure sale, or compliance by the mortgage holder with the notice requirements and other conditions of section 4532 of Title 12. An action to recover damages resulting from the sale of the premises on the date of the sale may be commenced at any time within one year following the date of the sale, but not thereafter.”

This is legal information; it should not be treated as legal advice.

Understanding Oregon’s Mortgage Assistance and Foreclosure Laws

Oregon has experienced a frightening foreclosure rate increase during the first quarter of 2010. Approximately 22 thousand homeowners in the state are delinquent in their mortgages as of January this year and there are thousands of others who have already lost their homes due to bank repossession. Currently, the U.S. Department of Treasury has placed Oregon in one of the top 20 states with the highest foreclosure rates in the country and has allocated a budget of around 86 million dollars to finance the different mortgage assistance and foreclosure prevention programs of the government which are implemented by the Oregon Housing and Community Services.

In order to avoid discrimination and prevent fraudulent activities in the Real Estate industry, the Oregon Housing and Community Services has come up with a new foreclosure law which will serve as a guide in giving mortgage assistance to Oregon homeowners. The following are the various laws regarding foreclosure and loan modification practices that must be upheld at all times by all sectors in the Oregon housing market.

  1. Affidavits for Loan Modification (HB 3610) – The new bill requires mortgage lender to file the affidavit requirement five days before the foreclosure sale takes place. Furthermore, it mandates servicers and lenders to provide accurate and complete information to their borrowers regarding their loan modification application especially when the lenders or servicers decide to reject the homeowner’s request.
  2. Foreclosure Prevention (SB 628) – It gives every Oregonian homeowner the right to a meeting with his or her mortgage lender either via telephone or face-to-face.
  3. Tenants in foreclosure (SB 952 and HB 3004) – These bills require landlords to give advance notice to their tenants about the imminent foreclosure of the property. It aims to provide protection to renting individuals or families, and providing assistance in finding low cost rental housing for them.
  4. Mortgage lending practices (HB 2188) – Provides protection to Oregonian homeowners against abusive and discriminating practices of mortgage lenders. It requires lenders to provide translation when transacting with individuals who speak in languages other than English.
  5. Enforcement of new federal mortgage lending standards(HB 2189) – Allows the Oregon Housing and Community Services to make laws that deals with the housing market to ensure that borrowers’ rights are protected. The bill also ensures that all personnel working in the loan modification companies in the state has adequate education, experience, etc.
  6. Mortgage and foreclosure notification (HB 3630) – Safeguards homeowners against fraudulent “consultants” and “equity purchasers” and gives borrowers the right to cancel contracts with these “loan modification experts” as the homeowner deemed necessary.
  7. Debt management services (HB 2191) – Protects vulnerable homeowners against misleading mortgage advertising, and loan modification agreements.

There are other mortgage assistance and foreclosure laws proposed by Oregon Housing and Community Services. To know your rights and responsibilities, seek for foreclosure counseling today. Call them at 1-800-SAFENET or visit http://www.oregonhomeownerhelp.org/ for more information.