5 Foreclosure Laws You Should Be familiar With
July 16th, 2008 Categories: Bloomingdale, Brandon Community, Brandon Real Estate, Diamond Dwellings, FishHawk, Riverhills
Know the rules of the foreclosure process in your state.
Foreclosure laws very from state to state so research your state’s laws. A good place to start your research of your states foreclosure process is www.foreclosurelaw.org/. If you or someone you know is facing a foreclosure of their home, there are 5 laws that that you should be familiar with:
1. Active Duty Military- If the borrower or the borrower’s spouse is on active duty military, the Civil Relief Act of 2003, prohibits a lender from foreclosing on the mortgage. Additionally, the borrower may qualify for a reduction in the interest rate or even a temporary suspension of mortgage payments.
2. Notification of Intent to Foreclose- Many states require that a lender notify the borrower 30 days in advance of obtaining a court judgment to foreclose.
3. Non-Judicial Foreclosure- Many states permit lenders to add a clause to a mortgage that permits the lender to foreclose and sell the property without obtaining court approval.
4. Right of Redemption- Some states permit a borrower in default to satisfy the loan default and recover the property if done within a specified amount of time after the property is sold.
5. Deficiency Judgment- Some states allow a lender that forecloses on a mortgage to file a judgment against the borrower that entitles the lender to collect from the defaulted borrower any amount of the outstanding mortgage not covered by the sale of the property in question.
It is always a wise decision to enlist the help of a local real estate attorney or one that specializes in bankruptcy or foreclosure law. They will have the answer to many of your questions concerning the foreclosure of your home.
Rick Frissell, Agent- Diamond Dwellings- Brandon Florida
813-653-1241
