Foreclosure Laws in Alabama

The state of Alabama allows for both judicial or in-court and non-judicial or out of court foreclosures. As with all states where both choices are available to the lender, the determining factor as to which process will be followed, is the power of sale clause. If the mortgage or deed of trust contains a power of sale clause, this allows the bank to skip over the step of obtaining the courts permission to foreclose. This of course saves the bank both time and money. Since it is in the banks best interest to spend less and move more quickly to the sale of the home, out of court foreclosure will be used whenever it is allowed.

The only situation in which judicial foreclosure would be used is when the bank cannot foreclose any other way. When no power of sale clause exists in the mortgage or deed of trust, then the bank must use the court system to move ahead towards the sale of the house.

To foreclose through the court system, the bank must file a law suit against the homeowner who is having trouble keeping current on their house payments. The object of this lawsuit is to have the court officially declare the homeowner in default and obtain a court order to foreclose. Once this has been obtained by the bank’s lawyer, the steps of moving toward the sale of the house remains the same for both in court and out of court processes.

Sometimes the power of sale clause is so detailed in its instructions as to how the sale must be carried out, that it will state how, when and where the foreclosure sale will occur. When this is the case, then these instructions must be followed. Most power of sale clauses are not so complete in their instructions and the usual method of foreclosure method of foreclosure will be followed in this state will be followed from this point on.

The notice of sale announcing the upcoming auction of the home must be run or published in a paper with circulation in the county where the home is located. The last of these ads announcing the foreclosure sale has to be run no less than thirty days prior to the scheduled sale date. If the property in foreclosure is located in more than one county, the ad or notice of sale must be run in all counties where it is located. This notice of sale must include the date, and time and location of the sale. The sale is almost always held in front of the main doors of the county courthouse in the county in which the home is located. The notice of sale must also describe the property and the terms of the sale.

The home will be offered to the person making the highest bid at the auction the winning bidder must be prepared to pay cash for the total amount of their offered bid price at the conclusion of the sale.

In regards to the publication of the notice of sale in a local paper, if there is no paper with general circulation in the county where the home is located, the banks lawyer must run the notice of sale in a paper with circulation in the nearest adjoining county. This ad must be run for four consecutive weeks.

The home owner has the right to stop the foreclosure by paying off the full amount of the debt up until the day before the scheduled foreclosure sale. Foreclosures move very quickly in this state with the average time frame being between 47 to 79 days. The right of redemption period is three hundred and sixty five days. This means that if the former homeowner wishes to regain ownership of the property they can do that for one year. The cost of this option is what the house sold for at auction.

How Do I Find Out About Home Foreclosure Laws?

Many first time homeowners or experienced homeowners are not aware of the fast track laws entitling their mortgage companies to exercise repossession in the event of non-payment of a mortgage.

These types of transactional methods are called non-judicial foreclosure actions. To that end, many homeowners will not be served with a lawsuit, rather they will be served with what is called a non-judicial foreclosure procedure with a Notice of Non-Judicial Foreclosure for Non-payment. This leaves many homeowners confused and sometimes uninformed with respect to this foreclosure remedy.

You will have to check with your state with respect to the timeline needed for each homeowner to respond to a Notice of Default, the document that marks the beginning stages of a foreclosure. At the point of a Notice of Default, there is a chance to restore or cure your mortgage status. Paying arrears or responding within a certain amount of time, is possible.

In many states, a creditor or your bank, will usually elect not to pursue legal complaint under what is called an Election of Remedies Law (also called 1A). Rather, it will opt for a civil proceeding outside of court, under the mortgage contract, wherein a lender can exercise a right to repossess the real property with transactional remedies, which is a speedy course of action. The bank or mortgage provider then has an auctioneer company auction your home to the highest bidder after a publication of the default and event.

All homeowners need to be aware of their individual state’s laws which provides remedies for a non-judicial foreclosure action which is also called foreclosure.

Foreclosure Laws in Michigan – Can Michigan’s Foreclosure Law Save Your Home? Check it Out

The US economy has gone for a dip since last few years and the fall is being continued. All the homeowners are afraid of foreclosure which seems to be inevitable. The foreclosure laws in Michigan can yet help you save your home from being foreclosed in case you act on time. Let us first understand the key facts of the foreclosures in Michigan:

The key documents here are the trust mortgage. This is nothing but the deed of trust that is made while taking up the mortgage. The state allows for judicial as well non judicial foreclosures. The non judicial foreclosure is known as ‘foreclosure by advertisement.’ It does not involve the court procedures in the matter.

In order to conduct the foreclosure in the non judicial cases, the trust mortgage must have a ‘power of sale’ clause. This allows the attorney to foreclose the property by default in case any of the monthly payments are defaulted.

In case the auction is conducted by the sheriff, there is a certain procedure to be followed up for the notice of sale. In case any of its conditions is not met, the borrower stands a chance to save the home:

· The lender must get notice of sale published in the newspaper for 4 consecutive weeks. This refers to the area of the county where the property in consideration is located.

· Then within 15 days of publishing the first notice, one copy of the notice of sale must be posted to the property address.

· This notice must contain the name of the mortgagor, name of the mortgagee, the name of any assignees or party, the date of mortgage and it is recordation. The other things it must contain are delinquent amount, the legal description of the property, the place & date of the foreclosure sale and the length of any applicable redemption period.

· In case the property in consideration is a residential one that does not exceed the area of 3 acres and does not exceed 4 acres and the defaulted amount on the date of the notice of foreclosure is higher than 2/3 of the original face amount of your debt secured by the mortgage, you can enjoy a redemption period of 6 months.

· In case the property is abandoned and is not in use, the redemption period is reduced to 30 days only.

· Generally one can enjoy a redemption period of around 1 year.

· The borrower can go head in the court if he / she feels that the sale was conducted at a very low price or it was conducted in any unlawful manner.

California Foreclosure Law Changes

In June of this year, California foreclosure law was re-written by the Democratic Senator from San Leandro, Ellen Corbett. The new law mandates that lenders in the state notify the delinquent owner at least 30 days before beginning the foreclosure process. It also requires a lender who has not tried prior to this notification to work with their delinquent accounts in an attempt to change the terms of the mortgage to abide by a 90 day moratorium on the foreclosure process while they do so.

Proponents and naysayers alike have chimed in on this aspect of the new law. Some say it is not constructive in that it allows the negligent owner to remain in the home without payment for 3 months. Others say this it is a positive change because it gives the homeowner some leeway in finding their way out of the enforced sale.

Delinquent payers have up to five days before the schedule sale to reinstate the property back to them. This includes, of course, paying all outstanding debt as well as legal costs and penalties that have accrued.

If a power of sale exists in the original mortgage, the sale goes through a non-judicial foreclosure process. If, however, no notice of sale is present, the lender must file a lawsuit in order to obtain a court order to foreclose, and the sale then goes through a judicial foreclosure. A judicial foreclosure allows the borrower to redeem the property up to 12 months after the sale. You can see why, then, that the non-judicial foreclosure is the vehicle of preference for most California lenders.

The process and time-line for California foreclosure is clear: Notice of Default is filed with the county recorder and sent to borrower within 10 business days and then again within that first month of filing. After 3 months, a Trustee sale date is set. The month prior to sale is important as 25 days before, notice is sent to the IRS (if appropriate), 14 days before sale, the Notice of Trustee sale is recorded. The borrow can reinstate the property to themselves up to 5 days before the sale, and on sale date, the property goes to the highest bidder.

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Foreclosure Laws in Georgia

Georgia is both a judicial and non-judicial state; meaning the foreclosure process can occur both in court and out of court. A non judicial foreclosure can be completed in less than 2 months.

A judicial foreclosure can occur in the state of Georgia, when the trustee deed or mortgage lack the clause that permits the non-judicial proceedings. The foreclosure process begins when the lender files a petition. This petition will describe the default amount, property, and situation. A written notice is sent to the borrower, letting him/her know that they need to pay the default within 30 days. If this is not resolved, a sale date is scheduled.

Most mortgages and trust deeds these days have a clause permitting out of court proceedings. This makes the non-judicial way more prevalent in this state.

Georgia has no law that requires the lender to warn the borrower before it begins the process of foreclosure. But, the deed of trust or mortgage might state they should.

Georgia law does not give a reinstatement “right” to the borrower. But, if the deed of trust or mortgage states the borrower has the right to stop their foreclosure by paying of the default amount and any extra costs, a borrower can always stop the foreclosure process by paying the loan balance.

Four weeks before the sale, a notice about the sale is published, once a week. Around fifteen days before the sale, a notice is sent is sent to the borrower. This notice includes; lender and borrowers names; mortgage info, the location of the sale, a description of the property, a date and time.

The auction or foreclosure sale is at the county courthouse. This occurs the 1st Tuesday of every month. It is usually held between 10 and 4 pm. The winning bidder must have the full amount to give to the person conducting the sale. If the sale is canceled, the process starts all over again.

There isn’t a right of redemption in Georgia, after a foreclosure sale.