Understanding Foreclosure Laws and How to Protect Yourself

Foreclosure laws can vary from state to state but overall they are essentially the same. It is very important for you to understand the laws so you know how you can buy a foreclosure property, how to find information on a foreclosure property, and the time it will take to remove current tenants, if there are people residing on the property.

If you are looking for foreclosure homes for sale there are many places to find them. Foreclosure laws require the county to list these properties in the public information section of the classified ads of any local newspaper. In any state, you can search through classifieds and locate foreclosures that might look right for you. Banks also list foreclosures for sale. They are not required to do so but banks don’t want to own homes and if they own a home that didn’t sell in an auction, they will list the properties and try to sell them too. Often times, you can find homes owned by lenders to be significantly lower than what you would pay at the auction. This is because the banks are desperate to sell unsold auction properties.

If you see a few properties you would be interested in buying at an auction, you can attend. Many people assume auctions are not open to the public but you have to be a part of some affiliation or real estate group to bid. This isn’t the case. Foreclosure laws allow anyone in the public to attend and bid on properties. Keep in mind; you will need to bring with you a down payment. This is not discrimination but protection for the bank the bidder really can afford to purchase the property.

It isn’t very common there are still people residing in a property once it goes to the auction for sale. However, there are cases where the previous homeowner is still there. If you buy a property at the auction and people are living in the house then you will have to take your sale documentation to the sheriff’s office. The sheriff’s office will post a notice to vacate on the door of the home giving them 72 hours to leave. If they do not leave the property then the sheriff’s office will physically remove them and their belongings. The belongings and furniture will be placed in a sheriff’s storage. This is nice because you don’t have to worry about what to do with all of the items.

Foreclosure laws are important to know if you are thinking about buying a property in the foreclosure process. There are many places to look for properties undergoing the foreclosure process. You can find properties in the local newspaper or even by asking the county courthouse. Anyone in the public can attend and bid on a home at the auction. The sheriff’s office will also help you remove anyone in the home once you purchase it.

Don’t let your home turn into a foreclosed property, save it before it’s too late.

Home Foreclosure Florida – What the New Florida Foreclosure Law Means For Homeowners

According to the 12/29/09 online edition of the Miami Herald, foreclosing on a homeowner in Florida just got a little more complicated and costly for lenders. The article states in part:

“… a state supreme court order issued today that aims to reduce a foreclosure overload. — [a] statewide program… requires mediation on all homesteaded properties before a foreclosure hearing is held.”

Basically it means that homeowners get to meet with lenders to discuss options other than foreclosure, ie, home loan modification or short sale is.

Other Particulars of this New Florida Foreclosure Law

Lenders are responsible for paying all mediation fees; these can be as much as $750.

Homeowners have the right to refuse mediation; they can also work out other options with their lender. However, every residential homesteaded property in foreclosure will be referred to this process as a matter of course.

Lawmakers hope that this new law will reduce the foreclosure case load in the state; a situation that has been referred to as “horrifying” by Florida’s Task Force on Residential Mortgage Foreclosure Cases.

Will Mediation Help Florida Homeowners Facing Foreclosure?

Reaction to this new law signals what many homeowners have been shouting all along. Namely that until home prices stabilize, the courts won’t work.

One commenter wrote, “Procrastination and disruption of the market correction by the courts wont work but rather make things worse. Home prices PLUS predatory property taxes, bloated insurance, and abusive HOA/maintenance fees still need to drop until reaching affordable income ratios and below rental values, …”.

The problem with many who are facing foreclosure now is still jobs… or a lack thereof. Many who are losing their homes now didn’t get subprime mortgages; they had good credit; and they didn’t buy homes that they couldn’t afford.

What they did do was lose jobs… and many have lost jobs that are not coming back. So unless this new Florida foreclosure law takes into account that many homeowners need some financial breathing room to get back on their feet, mediation is not likely to help.

How the Credit Crisis Is Prolonging the Home Foreclosure Crisis

And, when you add in the fact that many who have managed to hang on to their jobs can’t get home loans because of the credit squeeze, what you have is a lot of foreclosed homes that will likely sit on the market for a lot longer.

Need a Mortgage? Why Home Loans are Not Easy to Come by Now

Banks are skittish. After years of giving home loans to anyone with a pulse (which is how this whole subprime mortgage mess started), they now require credit scores above 720 (and in some cases 75); down payments of 10-20% and longer stints of employment.

So for example, if a couple wanted to buy a $200,000 home, a 20% down payment means coming to the table with $40,000 in cash – and this doesn’t include closing costs and all the other incidental costs that crop up when you buy a house.

Who has that!

So while mediation may help some Florida homeowners facing foreclosures to hang onto their homes, there ain’t a lot of hope until the jobs come back and people can get back on their feet financially.

All of this makes foreclosure clean up an excellent business opportunity — into 2010 and beyond.

The Foreclosure Law Help You Need

Foreclosure law is complex, to say the least. All you know is that you do not want to lose your home. You have put a lot of money and heart into this place and you want to keep it. Is it possible? What can be done? Those who are facing the potential of losing their property may find that there is legal help available to them that they did not know about. There are options in many cases. Consider what may be possible.

Legally Stop the Process

One reason to turn to an attorney when it comes to foreclosure law is because the attorneys can help you to find loopholes and limits that can allow you to stop the process altogether. If the lender did not take the right steps or there was a missing notification sent to you, then it may be possible to simply stop the process. Let the attorneys help you to find a way to stop this proceeding, but to do so you need to give them time.

Consider Modifications and Amendments

What do you need to get caught up on your loan payments? If you have no way to make payments, it is unlikely you can save your home. If you do, but you need help being caught up, allow an attorney to help you to get the loan modification or amendments you need. Sometimes, lenders will agree to add the missed payments to the end of the loan, lengthening it but helping you to get caught up.

Selling It

Sometimes, the best thing you can do to protect your credit is to sell your home. If you can sell it fast enough at a price that is worthwhile, you may even be able to use those funds to purchase a new home. You may also be able to refinance your loan with a new lender if you can afford to pay the closing costs. If this does not work, a short sale may be an option. Here, the lender agrees to accept less than what is owed on the home to sell it to buyers. The process may be long, but it can help you to get out from under the debt.

Want to Get Your Home Back?

In some states and in some cases, it is possible to use the laws of that area to get your home back even after foreclosing actions are taken. Work with a legal team that specializes in foreclosure law to find out if you can get your home back.

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.