Foreclosure Laws and What To Expect As A Borrower

Due to the current economic turmoil being experienced in the United States, there are many homeowners who now find themselves in the position of being behind on their mortgage payments. It goes without saying that this is an extremely stressful, and often scary scenario to find oneself in. Having an understanding of foreclosure laws can go a long way in helping to alleviate this stress, and empower oneself to take the appropriate actions to work with the bank and get things back on track.

Unfortunately, gaining such an understanding can be difficult, given that foreclosure laws vary from state to state. The process can be quite different from one state to another, and these differences will largely determine the proper course of action for a homeowner.

Foreclosure Laws in California

However, as an example, let’s examine the foreclosure laws in the state of California and how they impact the potential time line for foreclosure by the bank, and the eviction process if things progress to that level. Keep in mind that the timeframes stated here are merely what is possible. Your particular lender may not operate completely according to this schedule.

  1. In California, after 90 days of non-payment on your mortgage, California foreclosure law allows the bank to record a Notice of Default.
  2. After an additional 90 days, the bank is allowed to record a Notice of Trustee’s Sale.
  3. 21 days later, it is possible for the bank to sell your home at a foreclosure auction. This could result either in the bank finding a buyer for the home, or if the home does not sell at auction the bank could take the property back as an “REO”, or real estate-owned property. If your home sells at auction, at that point it could be nearly impossible to retain your home.
  4. If the bank does take the property back as an REO, the bank’s asset manager may offer what is known as a “cash for keys” deal. Basically, the bank offers from $3,000 to $5,000 for you to voluntarily move out of the home within 3-4 weeks. After you have vacated the property, the agent for the bank can list the property on MLS for sale to the general public.

Once the process of selling your home is initiated by the bank, there are various methods available at your disposal to stop it, assuming that you are looking to buy enough time to work out a resumption of payments with the bank.

Bankruptcy

One option to stop the sale is filing bankruptcy. This creates an automatic stay on the foreclosure process. Unfortunately, this doesn’t always work as a long-term solution because a bankruptcy designed to allow you to keep your home often will require you to resume payments at the same amount you were at before going into default, plus more in order to pay off your arrears over three to five years. Obviously, unless your income has been restored to prior levels, this often is not a workable scenario.

Litigation

The only other way to force the bank to stop foreclosure is to sue the bank and get an injunction to halt the process. There are only a few possible grounds on which you can file such a suit, including statutory violations or mistakes during the foreclosure proceedings, and common law violations such as violation of the HAMP program, fraud, or breach of contract.

For any of these options, it is imperative that you seek advice from a qualified expert in the foreclosure laws of your particular state.

Maryland Foreclosure Laws – Can the Latest Maryland State Foreclosure Laws Save Your Home?

Maryland foreclosure laws are quite different from other auction laws. Basically, these laws provide an understanding of the foreclosure process of the state and are different for every district or county. There are 3 main foreclosure laws of Maryland:

1. Judicial

2. Non Judicial

3. Right of redemption (depends on the case and decided by the court)

4. Time span – 3-4 months

1. Maryland judicial foreclosure law- In this process, if the payments are not made regularly by the borrower, the lender can get an order from the court to sale off the property. The lender can file a complaint ion the court only if the deed of trust contains no power of sale.

2. Maryland non judicial foreclosure law – In the non judicial foreclosure law of Maryland, the governor appoints a public trustee who acts commonly for all the auction sales. The authorized attorney of the lender, files the documents with the trustee office and recorder’s office of the area where the property is located.

· The clerk of the area issues a notice of demand from the borrower and this notice is published in the local newspaper for 3 weeks. Property sale will take place after 45 days, if the borrower does not respond and the lender is not supposed to send any information about the sale process to the borrower.

· According to Maryland foreclosure law, property sale can take place in any court and the sale would be handled by the trustee only

You can now save your home from getting sold through Maryland foreclosure laws:

· The court before issuing a decree for sale to the lender, will give you a chance to pay all the debt by giving you a time frame of some days. You must make all the payments pending up to date and save your property.

3. The right of redemption is a part of Maryland foreclosure law, which depends on the court. One can redeem the property after the sale. You will need to pay the entire amount on which the bid has been stopped and court will give you 30 days to arrange for the payment. If you succeed in making the payment in that time, you can get your property and the amount that has been paid by you would be used for foreclosing your loan.

California Real Estate Foreclosure Law

When you consider California real estate foreclosure law, it is important to know what questions you need answers to before venturing in research. California has a wide selection of laws. The laws cover topics, such as associating disputes, rights act for basic interest development, consumer rights, dispute topics, statutory bases, renewal specifics, deficiency, and more.

Some of the latest laws came available recently, which cover Real Estate Laws – Text and Case. These laws commit to a few standard aims of the precursors. The first law covers the logical, succinct coverage “of all” the state laws that are relevant to real estate. The second law covers the viable applications “of all” chief abstracts and officially permitted principles explained in the decree. The third law is cases studied and analyzed in which have ascent to standard circumstances and that propose opening for privileged negotiations. The forth law is the expansion of coverage in essential locations that has been presented preceding the releasing of the first edition. This makes up the lease, deed of good faith on foreclosures, environmental, eviction processes, listing, and agreement laws.

The recent edition supplies concrete and succinct details and clarification of the current laws in California as well as the penalties. The laws fail to give meticulous detail to a particular law, but it does offer you a well-organized structure. It is a valuable tool to use as a reference.

Other California real estate foreclosure laws in progress cover the homebuyers, sellers, and affiliates. Broker laws are present as well in California. Since the mortgage brokers assist clients with getting their hands on a loan, thus, money is involved and for the good interest “of all” parties, the laws will not allow a broker to take part in helping borrowers find loans without a license. The broker must obtain his or her license from California’s “Department of Corp,” or from the Real Estate Department. You can check with either department to find out if a broker is licensed by the proper officials in the state of California.

Before you start signing papers with a broker, it is important to discuss fees. Brokers work on a commission basis and often receive lender fees. California does not set limits on these fees. The broker is usually paid by the buyer or lender. You can pay the broker with cash, rebates, or proceeds from your home loan. The fees are added to your mortgage.

California does not set laws on interest rates. The rates change on a daily basis, based on the market changes. Be sure to ask your broker about interest rates. All loans have interest attached including, APA, or Annual Percentage Rates, and so on. Ask about all interests that could potentially incur on your loan. Points, rebates, and other options are offered with some loans as well. Make sure you understand all pay options, drawbacks, point systems, clauses, stipulations, interest rates and more before signing any papers with a broker. To learn more about California real estate foreclosure law, visit the Internet today.

Foreclosure Laws in Ohio – Why Foreclose, When You Can Refinance by Ohio State Laws!

The home owners of US are quite badly struck with the downfall of the economy and the fluctuating property rates. One of the most badly struck states is Ohio. Considering the condition the government has come forward to help the struggling families.

Here are some points that would help you understand the foreclosure laws in Ohio

· You must have the right knowledge of the foreclosure process, foreclosure laws & the options that you have to save your home. For that the government has launched the project – Save Your Dream. Under this project the government has launched a website with the same name. Log on to this site and gather as much details as possible.

· You must act in time. The more delay you do, the more problematic the issue becomes! And of course, no lender would forgive you for your laid back attitude when you are not paying the debts! So contact your lender as soon as possible and tell them your hardship. You must also contact the loss mitigation counselors simultaneously.

· When ever the lender contacts you through mail or letter, make sure that you respond back to them. It would help you maintain a better rapport with the lender or the mortgage company.

· In stead of approaching the private loan negotiators, prefer the counselors appointed by HUD. They access your financial situation & help you put across your case better in front of the lender. They make sure that you settle for a long term affordability rather than a temporary relief.

· You can go ahead to meet non profit organizations like Ohio Neighbor Works. They act as a liaison amidst the borrower & the lender. The government is also conducting several programs like Ohio’s Borrower Outreach Days. This way the government reached out to all the parts of the state and provides the home owners with essential information like loan counseling, loss mitigation, information on legal aids, credit counseling, refinancing, etc.

· Under certain circumstances you can be eligible for the Opportunity Loan Refinance Program and the Ohio Housing Finance Agency’s (OHFA) refinance opportunities. Both programs they give the home owners an affordable fixed rate loan in place of the unaffordable loan based on ARM that is adjustable rate mortgage.

Here are some details on refinance done under the Ohio State Laws:

Under this program, the Federal Government helps the borrowers to save home. OHFA works on the basis of a person’s current monthly income and helps them have an affordable rate of interest. They refinance their existing ARM based unaffordable loans into secured 30 year fixed rate loans. However, in case your mortgage amount is exceeding the real worth of your home, you are not legible for the OHFA opportunity benefits.

Foreclosure Laws in Texas

In Texas, both judicial or in court and non-judicial or out of court foreclosures are followed. As in all states where this is the case, the determining factor as to which process will be followed, is whether or not the mortgage or deed o trust has a power of sale clause in it, Most do and therefore most foreclosures follow the out of court process. It’s less costly and quicker for the bank to do it this way.

Judicial foreclosure takes longer, because a judge must declare a foreclosure, following the filing of a law suit. After this happens, the auction proceedings are the same as power of sale or out of court foreclosures.

Before going forward with a foreclosure, the bank has to send the home owner a letter of demand. This letter states that homeowner has only twenty days to make up the payments they are behind on, or the foreclosure will start.

After the twenty days has expired, and at a minimum of 21 days prior to the scheduled sale of the property, the bank must file a notice of foreclosure, with the county clerk. They must also send this same notice to the home owner at their last known address. In addition to these two announcements of the sale date, this same notice must be placed or posted on the door of the courthouse in the county where the home is located.

Texas is what is referred to as a Super Tuesday or super sale date state. On the first Tuesday of every month, every property in foreclosure for that month is auctioned off. Holidays are no exception to this rule.

The sale is held at the courthouse steps and the bidders must be prepared to pay in cash, of course the bank may if they don’t like the highest offer. Since they are the ones who are owed the money that this home is securing, they don’t really pay that bid, they just take it back. In other words, they are choosing to be stuck with the property, rather than take the highest bid.

In Texas, the bank can choose to pursue the home owner for the difference between the fair market value of the property and what was not generated at auction. Fair market value is calculated at the time of the sale. Most banks realize that the person who lost the home to foreclosure does not have other resources to pay the difference between the auction price, and the loan amount, so they usually don’t pursue the homeowner for the money.