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.

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.