Foreclosure Laws in Indiana

Indiana is a strictly judicial state, when it comes to foreclosure laws. This means that is only handled through the court system. It takes around 9 months to complete the foreclosure process.
The process of foreclosure begins when a complaint is filed against the borrower in a court of law. According to their law, a default notice does not have to be given to the borrower before this complaint can be filed.

Whichever date the mortgage began, dictates the period of time between the actual sale, and the pre-foreclosure period. Most of the time this, is around 3 months. Some older mortgages can be 6-12 months. If a property is abandoned, there is no waiting period. A lender loses his right to pursue an unpaid debt from the sale of the property, if the mortgage holder allows the sale of the property, if the mortgage holder allows the sale of the property to go through before the pre-foreclosure period is over.

A certification of the order of sale and judgment are issued by the clerk to the sheriff, once this pre-foreclosure period has expired. Once this order has been received, the sheriff goes forth with the sale.

Anytime before the sale, the judgment can be satisfied by the borrower. This includes paying the interest, the debt, and any other costs, the complaint will then be dismissed.

A publication of sale must first be placed 30 days before the sale. It is then published once a week. The sheriff chooses an auctioneer to conduct the sale. He also is in charge of posting the sale in at least 3 places, as well as the courthouse in the county which it is located. The sheriff also serves the notice of sale to the borrower.

The property ownership is immediately transferred by the sheriff, to the winning bidder. If the sale is postponed by the lender, all notices must be re-served and re-published.
There is no right of redemption in Indiana once the sale is complete.

Understanding Illinois Foreclosure Law

How to navigate Illinois Foreclosure Law
In today’s uncertain economy many families are unable or will soon be unable to make their mortgage payments. The clients that come to my law practice for counseling are mortified with thought of being thrown out of their house through foreclosure. To compound their fears homeowners who have missed a mortgage payment or a few payments are fearful that any day the sheriff with knock at their door and force them to leave their home.

Fortunately, in Illinois a homeowner who has missed a mortgage payment, or two payments, or even three payments will not immediately have to move out of their homes. In Illinois missing a mortgage payment in not the end of living in your home. It is only the beginning of the long process of foreclosure (in Illinois), A process where missing a mortgage payment will not result in immediate eviction from their home.

Certainly, missing a mortgage payment is reason for concern however, it is not the end of the world. Further, understanding Illinois foreclosure law can help homeowners have less anxiety and better make decisions about their future living accommodations.

Illinois Law: Mortgages in default can be reinstated
Good news, under Illinois law if a mortgage goes into default a homeowner can reinstate their mortgage. Reinstatement is effected by curing all the defaulted payments (paying the missed payments) and; paying all costs and expenses associated with the default (usually back interest, late payment penalties, and attorney’s fees). The reinstatement payments must e made within 90 days from the notice of default.

If the missed payments along with the interest, penalties, and attorney fees are paid in the 90 days prior to the notice of default the mortgage document shall remain in force as if no acceleration or default had occurred. See 735 ILCS 5/15-1602.

Illinois Law: Mortgages in foreclosure can be redeemed
More good news, under Illinois law if a home goes into foreclosure the homeowner can redeem their mortgage from foreclosure process. When the mortgage on residential real estate is foreclosed on the homeowner is granted a redemption period in which to stop the lawsuit for foreclosure and retain their home.

In Illinois the homeowner has 7 months to redeem their home from the date the homeowner is served with a summons for foreclosure or served by publication. See 735 ILCS 5/15-1603.
To redeem their home from foreclosure the homeowner must pay the following:

The amount specified in the in the judgment of foreclosure which shall consist of
a) all principal and accrued interest secured by the mortgage and due as of the date of judgment.
b) all costs allowed by law, this would include late payment penalties, additional interest from the date of judgment to the date of redemption, attorney and other administrative fees.

In my bankruptcy practice I often counsel with clients who have missed one or two mortgage payments. They are fearful the sheriff will be knocking on their door to evict them from their home.

Fortunately, Illinois foreclosure laws allow homeowners (through reinstatement or redemption) the ability to retain their home and gives the homeowner who has missed mortgage payments ample time to “save” their home.

What to expect you miss a mortgage payment (do not worry)
Generally, the mortgage lenders, large banks and corporations that do mortgage lending are bureaucracies and are generally unable able to foreclose if you have missed a only a single mortgage payment. This systemic inability to take action is frustrating, but is actually beneficial if you have not made a mortgage payment lately.

At my law firm Thinking Outside the Box Inc. our experience has been that the mortgage company probably will not even notice you until you until you have missed three or four payments, (generally). We often have clients who have missed three to five payments and have had no contact with the lender regarding the missing payments. We have observed that if you miss three or four payments and you will get a letter of default stating you have thirty days before the mortgage company will file a suit for foreclosure.

Next, your mortgage company will task a local law firm to file a lawsuit to foreclose on your home in the state courts.

DO NOT WORRY. You have 90 days to reinstate your mortgage if you are in default or 7 months to redeem your mortgage if you go into foreclosure.

Even if you ultimately lose your home in foreclosure generally you will not have to leave your home for 9 to 12 months from the time you stopped making mortgage payments.

What should I do if I cannot make my mortgage payments or in the near future cannot make my mortgage payments?

Step One: Make the decision
The most important decision to make is “can I afford the home I am living in?” Some of our clients have paid thousands of dollard to their mortgage company only to later lose their home. Be honest with yourself do not throw away your money on a house that you will ultimately lose.

If long term, you will be able to make up the missed payments and keep current on the subsequent payments then you can keep the home… if long term you cannot make up the missed payments and at the same time continue to make the normally scheduled payments then you cannot keep the home.

Step Two: Pick your optimal strategy
KEEP YOUR HOME: If you decide you can keep the home call your lender and make a plan to cure the arrearages. If you need time, you can file a Chapter 13 bankruptcy. Under Chapter 13 bankruptcy the Court forces your mortgage company to let you to make up the missed payments over time (3 or 5 years). Filing a Chapter 13 bankruptcy will also stop the foreclosure process.

GIVE YOUR HOME BACK TO LENDER: If you come to the decision that long term you cannot afford your home, you will have to let it go back to the lender. Since you have already missed some payments the foreclosure process will take its natural course. After you miss three or four payment the lender will file a lawsuit for foreclosure, from the point you are served with the lawsuit Illinois law allows you to continue to live in the home for 7 more months (without having to make a payment). This grace period gives you the time to save money in anticipation of moving.

UNDECIDED WHETHER TO KEEP HOME: If you are undecided whether you can afford to keep your home here is the optimal strategy. It does not make sense to continue mortgage payments if your financial situation is uncertain making you unable to pick one of the previous two strategies. Immediately stop making mortgage payments, but do not stop making payments and spend the money. Stop making payments and put your normally scheduled payments into a savings or checking account. Then if your finances improve take the savings pay off the missed payments and fees and keep your home. If it ultimately turns out that your finances do not improve, allowing you to keep the home, you will have some money to help fund your move and make a deposit on a more affordable rental.

If you are having trouble making your mortgage payments do not be overly concerned. If you miss a payment or a few payments you will not lose your home immediately. Illinois foreclosure law will allow you to reinstate or redeem you home and give you a fair amount of time to do it.

Finally, this article is general foreclosure information based on Illinois Law, however it cannot replace the advice of an experienced bankruptcy attorney who practices law in the state where you live.

Thinking Outside the Box, Inc.
Jon Dowat Attorney at Law
4320 Winfield Road Suite 200
Warrenville, IL 60555
630-225-9840 or 630-780-8474

Real Estate Foreclosure Laws in Maryland

Maryland Protection of Homeowners in Foreclosure Act

Anyone who is involved with homeowners in Maryland that are 60 days late or later on their mortgage payments should educate themselves regarding the Maryland Protection of Homeowners in Foreclosure Act. This includes Realtors, Investors and anyone who is offering foreclosure consulting services. If such persons are found to be in violation of the Act, they are subject to stiff criminal penalties. Exempt are attorneys and loan servicers, loss mitigation departments or persons regulating banks, trust companies, savings and loan associations, credit unions, or insurance companies, if the person performs services as part of their ordinary course of business.

For more information on the Act, please visit the State of Maryland website. The act was enacted to protect homeowners from crooks who prey on distressed homeowners and try and take advantage of the homeowner by charging fees for services that are not performed or excessive upfront fees.

Maryland Foreclosure Help

In order to avoid the foreclosure process, Maryland homeowners can get help from the following organizations or private companies:

· MDHope.org. is part of the Maryland Department of Housing & Community Development. They offer counseling services and refinance programs to Maryland homeowners for up to $15,000 for short gap loans as a result of financial difficulties.

· FHA Secure program is part of HUD. This is a national program that gives homeowners who do not have FHA financing or who have adjustable rate mortgages an opportunity to refinance.

· Maryland State Bar Association. Offers answers to homeowners who are facing foreclosure and refers attorneys who are foreclosure defense experts.

· Maryland Foreclosure Defense Attorneys are the only legally qualified persons authorized to represent borrowers to assist them with legal defenses against foreclosure in court proceedings. They can conduct a forensic loan audit to determine if there have been any predatory loan practices also in order to rescind the loan, and are able to recommend other options to borrowers to save their homes from foreclosure. They are also qualified to assist the borrower with negotiating a mortgage modification.

· Private Mortgage Modification Companies can help homeowners negotiate a mortgage modification with their lender for a fee to save their home from foreclosure.

· Mortgage Brokers are able to help borrowers with refinancing options and mortgage modification negotiations.

The best prevention against foreclosure in Maryland is for Maryland homeowners to contact their lenders early on and discuss other options that may be available to them to save their home from foreclosure. Not asking for help and not communicating with the lender is a mistake that many borrowers make, and they end up losing their homes when they could have saved them.

Foreclosure Process

In Maryland, a notice of foreclosure on a mortgage or deed of trust of a residential property cannot be filed until 90 days after default or 45 days after a notice of intent to foreclose is sent, whichever is later. The foreclosure process is instituted by the lender through the courts. The typical foreclosure action takes 46 days.

The lender must file a complaint in court against the borrower stating that there has been a default, and obtain a decree of sale from the court that has jurisdiction based upon where the property is located. The court will determine the amount owed to the lender and set a time limit in which the borrower has to pay the sum owed. If the sum is not paid by that time period, then the court will set a sale date.

One thing that is different about the foreclosure process in Maryland compared to other states is that prior to the sale date, the lender does not have to notify the borrower that a foreclosure action has been filed against the borrower. Most states require that the complaint be served upon the borrower and all interested parties and that the borrower is allowed a statutory time period in which to respond.

Notice of Sale and Auction

The notice of sale must be published in a newspaper in the county where the property is located for three consecutive weeks. The trustee must send notice to the borrower and all interested parties at least 10 days prior to the sale/auction. The property will then be sold at an auction to the highest bidder.

The sale is conducted by an auctioneer at the courthouse steps and the highest bidder is awarded the property. After the sale, a notice is published in the newspaper in the county where the property is located giving all interested parties 30 days in which to object to the sale. If there are no objections after the 30 day period, then the property is awarded to the new buyer and title is transferred. If no one bids at the auction, then the bank will acquire back the property and it becomes an REO (real estate owned) property.

Redemption Periods

There are no statutory redemption periods for the borrower in Maryland. The court can set one if they so desire.

Foreclosure Law – Some Things You Should Know

If you have a home loan and are current with your payments, then, like most people, you may view foreclosure law as an unknown subject and something you hope you never need to become familiar with. If, however you’ve missed a couple of payments, you may find yourself getting VERY familiar with foreclosure law very quickly, as you will need to in order to save your home.

That being said, some basic knowledge can go a long way in giving you peace of mind regarding what is involved in foreclosure law as well as what options you have.

One thing to understand is the process by which foreclosure operates. Typically, once you’ve fallen behind by two payments the bank has the option to begin proceedings to take back your home. This starts as you might expect with filing a lawsuit to get a court order to foreclose. From there, typically there is a foreclosure sale. Fortunately, there is also a waiting period of between three and twelve months, the length of this period will vary according to state laws.

So, what can you do?

If you’ve been given a notice with intent to foreclose, all is not lost. The simplest thing to do is source the funds and pay what you owe. Failing that, you could also make arrangements to get on a payment schedule that fits your circumstances. Remember, your lender will want to work with you as it costs them time, money, and aggravation to foreclose. And most importantly, they do not want to own property that may or may not sell quickly.

Although it may be uncomfortable, communication with your lender is key here as this shows them you are serious about keeping your home. They may let you refinance your mortgage or do a loan modification.

One thing you should definitely NOT be without when dealing with foreclosure law is a good foreclosure attorney. A good attorney can act as an intermediary between you and your lender as well as explain things in a way that is understandable to you, thus taking away some of the stress you will be feeling.

This is one of the key things to remember when dealing with foreclosure law and the possibility of losing your home: stay calm and focused. At first this may sound silly, but ask yourself if having hysterics would help? It will not do your cause any good to go to your lender or lawyer angry or in rough emotional shape. Above all, you need to be able to think clearly. Instead, use your emotions to help focus your energy on solving the problem. You will find that it will go faster and easier this way.

Ultimately, you need to be aggressive about solving your dilemma and take every avenue to work with your lender so that they get paid and you keep your home. Foreclosure law can seem intimidating, but with the right knowledge and a solid team of professionals, it need not be.

Arizona Foreclosure Law Summary

Judicial Foreclosure and Non-Judicial Foreclosure are both methods comprising Arizona Foreclosure laws. Under this legislation, a Judicial Foreclosure simply requires a lawsuit in order to obtain a court order to foreclose. This becomes necessary when there is not a power of sale written into the mortgage or the deed of trust.

A power of sale is a clause in the mortgage or deed of trust giving the lender permission to sell when a default occurs. When the power of sale is present, the courts are not part of the foreclosure process, permitting a Non-Judicial Foreclosure to go forward; this is the most common method of Arizona foreclosures.

A notice of Trustee Sale is filed in the county recorder’s office, and allows a 90 day period from the date of that notice, giving the property owner a chance to pay off the lien. All parties affected by the sale are notified by the Trustee, but during this time and the 90 day waiting period following the Notice of Trustee Sale being filed, the homeowner is still responsible for the property and all incurred debts.

It is only after all late payments have been made, including late fees, lender fees, and attorney fees, is the Notice of Trustee Sale voided and the property returns to the owner.

Should that not happen, the property is sold at auction and the owner loses all rights to the property. The proceeds from the highest auction bidder will pay off the primary lien. Any remaining balance goes to junior lien holders in a determined priority.

There are certain regulations governing how much the successful bidder at auction must put down at time of sale (usually $1,000), and a deadline set for payment in full. If this is not completed on time, the $1,000 is retained, and notice and deadline is given to the second highest bidder.