Foreclosure Law & Judicial Foreclosure Process

Foreclosure processes are different in every state. If you are worried about making your mortgage payments, then you should learn about your state’s foreclosure laws and processes. Differences among states range from the notices that must be posted or mailed, redemption periods, and the scheduling and notices issued regarding the auctioning of the property.

Generally, mortgage companies start foreclosure about 3-6 months after the first missed mortgage payment. Late fees are charged after 10-15 days, however, most mortgage companies recognize that homeowners may be facing short-term financial hardships. It is extremely important that you stay in contact with your lender within the first month after missing a payment.

After 30 days, the borrower is in default, and the foreclosure processes begin to accelerate. If you do not call the bank and ignore the calls of your lender, then the foreclosure process will begin much earlier. Once properties are sold through an auction, families have a small amount of time to find a new place to live and move out before the sheriff issues an eviction.

Because of today’s difficult economic climate, falling behind on mortgage payments is a common problem for many people. If this happens, the lender will eventually begin the process of foreclosure. Depending on the state laws where the property is located, the type of documents used in the loan, and the terms contained in the documents, banks may pursue a judicial or non-judicial foreclosure process. Typically, if a mortgage is used to secure the lien on the property (as opposed to a deed of trust), judicial foreclosure will be used by the lender to take the property back. The judicial foreclosure process is a lengthy and difficult one, requiring expertise. If you are facing this situation, contact an experienced foreclosure lawyer today.

How It Works

In a judicial foreclosure, the lender must first file and win a lawsuit for the right to foreclose. Therefore, this process can take several months to a year. If a borrower defaults on a loan, the lender can file court proceedings to seek a judgment for the money due. The judgment allows the property to be sold in a foreclosure sale. The process is as follows:

-Notice of Intent

-Notice of the Lawsuit

-Response from the Borrower

-Notice of Intent to Sell

-Foreclosure Auction

-Repossession

What You Should Do

 It is important that you answer the lawsuit that the bank files against you as soon as possible. Although most answers are filed as a proper legal document, some courts will accept almost anything as an answer…even just a letter from you as the homeowner explaining why you are behind and requesting more time to work out a solution. If you do nothing, however, the bank is able to get a default judgment and have the home listed for auction very quickly. If you act just as quickly and mount a defence, you can often receive several additional months to stay in your home mortgage free. This is because the burden of proof is on the bank to show that you are behind on your payments and that they have the right to collect on the loan. It may be the case that you have fallen behind, but the company suing you has no real legal right to the payments anyway, and the lawsuit can be thrown out or severely delayed, depending on the circumstances.

Get Legal Help

 Don’t become one of the many who have lost their homes because of complacency or lack of knowledge. There are solutions to foreclosure, if you act quickly and with determination. The key is to involve people who will guide you through the process and help you keep your home, so contact an experienced and knowledgeable foreclosure lawyer today!