What You Need To Know About Foreclosure Laws
The home foreclosure process and laws are different in each state. If you or someone you know is facing a possible foreclosure, here are some things you may need to know.
There are 2 types of foreclosures, judicial and non-judicial. Judicial foreclosure means there is a judge involved, and non-judicial means that there is no judge involved.
In the states that require a judicial foreclosure judgment, the lender will have to go to court to plead their case as to why your home should be taken away, or put up for auction. Normally when a complaint is first filed, the court date will be set allowing both the lender and the homeowner to present their cases.
The judicial foreclosure process takes time, if they win the case it could be months before the house may be auctioned off. This time period is often beneficial to the homeowner, as it may give them time to fix the problem that caused them to be facing the foreclosure in the first place. If the problem is not taken care of the home will be auctioned off. Some states refer to this auction as a courthouse auction or a sheriff’s sale. Once the sale is complete, if the homeowner is still living in the home, they will be escorted out.
In other states where they have non-judicial foreclosure, the lender simply files a notice of default with the county records office, and the homeowner is notified by mail of the proceedings. Sometimes the notice of default will be published in the newspaper. The homeowner is usually given some time to fix things with the lender, the time frame also varies by state.
If you are a homeowner who is struggling to make your mortgage payments, and facing foreclosure, find out the specific foreclosure laws in your state.