Foreclosure Processes Vary from One State to Another
Foreclosure Processes Vary from One State to Another
Not everyone is aware of this, but the home foreclosure process can be different from one state to another. This is why it is important to know what your state laws and regulations are, and if at all possible you should consult with a professional attorney.
The two primary types of foreclosure process is so are known as judicial and nonjudicial. Judicial means a judges involved, and not in judicial obviously means a judge is not involved.
In states which require a judicial foreclosure judgment, the lender must go to court to and plead their case as to why your home should be taken away and put up for auction. Usually when the complaint is first filed, a court date is set so that both the lender and the homeowner can present their cases. And sometimes the judicial process takes quite some time.
Even now after a judgment is made in favor of the lender, there may be many months before the House is actually auctioned off. This period of time is sometimes beneficial to the homeowner, because they may be able to fix whatever financial problems caused the foreclosure to begin with.
If the problems are not fixed of course, the House will eventually be auctioned off. In some states this is referred to as a courthouse auction, while in others it’s called a sheriff’s sale. Usually as soon as the sale is completed, the homeowners will be escorted out of the home if they are still living there.
In other states there is no quarter preceding or judge ruling needed to start a foreclosure process. Instead the lender simply files a notice of default at the County recorder’s office, and mail is sent to the homeowners as well. The notice of default is usually published in the newspaper as well.
Generally there is some leeway time for the homeowner to try and make things right with the lender after this notice is filed. This is often known as the redemption period. This time also vary from one state to another. One state may allow three months for example, while another requires only time of six months.
If you are a homeowner, and you do not know what the current rules, laws and regulations are for your state, find out. This is particularly important if you are struggling to make your mortgage payments, and you worry that you may find yourself going into foreclosure sometime soon. Even if you’re not worried about being foreclosed on right now though, it’s always good to know how the process works so you can be prepared to solve the problem if it ever arises.
