Foreclosure Law


Foreclosure Law





Foreclosure Law Firms
What is Foreclosure law? This refers to the legal procedures necessary for claiming mortgaged property from borrowers who have defaulted on the loan payments. This process is used as a remedy by the lenders and subsequently closes the obligation or liability when they recover the money owed by the borrower via other means, such as selling the property that was originally mortgaged.

To initiate the process, the lender, who holds the security interest in the real property, must bring an action to terminate the interest of the borrower. This will then allow the lender to remove the borrower from the real property so that he/she may take possession of it and offer it up for sale in order to satisfy the debt. At this point the money owed may include the associated foreclosure costs and unpaid interest in addition to the remaining unpaid loan amount. Because many of the laws governing this process are created and enforced on the state level, they vary throughout the U.S. However, most foreclosure actions fall into one of two categories – either a judicial foreclosure or a non-judicial foreclosure.

In a judicial foreclosure, the lender must bring the action in court, by asking for an order that demands payment on the loan and upon failure to obtain the moneys owed, that the lender has permission to sell the property to pursue repayment of the debt. These types of foreclosures are frequently sought in both deed of trust states and mortgage system states when the amount that the borrower still owes is in excess of the value of the equity in the real property. In this way, the lender may obtain a deficiency judgment for the remaining amount due after sale of the property. There are states, however, where the lender does not need to file a lawsuit to obtain a deficiency judgment if the foreclosure is upon the mortgage or deed of trust and therefore this process would not be necessary. A judicial foreclosure usually takes several months.

In a non-judicial foreclosure, the procedure can be completed more quickly. The lender must wait a certain amount of time after the mortgage payment becomes past due before initiating this process. The required time period varies from state to state. After the allotted time has passed, the lender initiates the action by serving the borrower with a “notice of default”, which must contain information about the amount required to “cure” the default and how much time is available to evade a foreclosure. If the borrower cannot pay the necessary amount in time, then the lender may move forward with the sales process. Typically, in these states, the borrower had signed a promissory note and a deed of trust when the mortgage or refinance took place. Under state law, the deed of trust usually authorizes the lender to foreclose on the property if the borrower defaults, without the necessity of a court order. Visit Us at Google+ Copyright HG.org

Foreclosure Law - US

  • Federal Housing Administration

    The Federal Housing Administration, generally known as "FHA", is the largest government insurer of mortgages in the world. A part of the United States Department of Housing and Urban Development (HUD), FHA provides mortgage insurance on single-family, multifamily, manufactured homes and hospital loans made by FHA-approved lenders throughout the United States and its territories.

  • Helping Families Save Their Homes Act of 2009

    The Helping Families Save Their Homes Act of 2009 (H.R. 1106 or S. 896) is a recently enacted public law in the United States. On May 20, 2009, the Senate bill was signed into law by President Barack Obama. The stated purpose of the act, a product of the 111th United States Congress, was to allow bankruptcy judges to modify mortgages on primary residences, among other purposes; however, that provision was dropped in the Senate and is not included in the version that was eventually signed into law. In addition, the bill amends the Hope for Homeowners Program as well as provide additional provisions to help borrowers avoid foreclosure.

  • Homeowner Affordability and Stability Plan - US Treasury Dept

    On February 18, 2009, President Obama announced a comprehensive plan to help responsible homeowners avoid foreclosure by providing affordable and sustainable mortgage loans. The Homeowner Affordability and Stability Plan, a $75 billion dollar federal program, provides for a sweeping loan modification program targeted at borrowers who are at risk of foreclosure because their incomes are not sufficient to make their mortgage payments. It also includes refinancing opportunities for borrowers who are current on their mortgage payments but have been unable to refinance because their homes have decreased in value.

  • Housing and Economic Recovery Act of 2008

    The Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, 122 Stat. 2654, enacted July 30, 2008) designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008. It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value.

  • Mortgage Forgiveness Debt Relief Act and Debt Cancellation - IRS

    The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

  • National Fair Housing Policy and Equal Opportunity - HUD

    The Office of Fair Housing and Equal Opportunity (FHEO) administers and enforces federal laws and establishes policies that make sure all Americans have equal access to the housing of their choice.

  • Real Estate Settlement Procedures Act (RESPA)

    The Real Estate Settlement Procedures Act (RESPA), enforced by the Consumer Financial Protection Bureau (CFPB) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices.

  • Statement of Policy on Foreclosure Consent and Redemption Rights - FDIC

    The policy statement applies to the Corporation in its corporate and receivership capacities. It confirms that section 1825(b) applies to all property held by the Corporation acting as receiver or in its corporate capacity, including property of the financial institutions for which the Corporation has been appointed receiver or property which the Corporation holds for liquidation.

  • Truth in Lending Act (TILA)

    The Truth in Lending Act (Regulation Z), part of the Consumer Credit Protection Act, promotes the informed use of consumer credit by requiring disclosures about its terms and cost. It gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes.

  • US Department of Housing and Urban Development (HUD)

    HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. Whether you're in foreclosure now or worried about it in the future, we have information that can help.

State Foreclosure Laws and Information

Organizations Related to Foreclosure Law

  • Department of Veterans Affairs - Avoiding Foreclosure

    If you anticipate getting behind on your mortgage payments, or are behind, VA may be able to help. The information below addresses options you may have to bring your loan current and save your home from foreclosure. When your loan goes into default, your servicer/holder is responsible for contacting you, the mortgagor, to determine the reason for the default and attempt to make arrangements to cure the delinquency. If the problem can not be resolved by the time you are three payments past due, the servicer/holder is required to notify VA that your loan is in default. After this notice is received, VA will attempt to contact you to discuss your current situation and help you determine the best course of action.

  • Federal Reserve Banks - Foreclosure Resource Centers

    The Federal Reserve Banks have established Foreclosure Resource Centers to help address local and regional challenges in their mortgage markets and local communities. The map below links to these regional foreclosure centers, where you’ll find resources for small municipalities, housing counselors, and consumer and community groups.

  • Foreclosure Prevention - FDIC

    The FDIC -- along with fellow regulators and the banking industry -- is working vigorously to help consumers and the banking industry avoid unnecessary foreclosures and stop foreclosure "rescue" scams that promise false hope to consumers at risk of losing their homes. Banks that originate and service mortgage loans are encouraged to make prudent attempts to find solutions for homeowners having trouble making their mortgage payments. Exploring options that can keep homeowners in their homes may be one of the best ways for lenders to mitigate losses, preserve customer relationships, and maintain safe and stable neighborhoods.

  • Foreclosure Rescue and Loan Modification Scams

    This FDIC primer is a guide on how to identify a foreclosure rescue or loan modification scam and how to address the problem when you've already been scammed. To protect yourself from opportunity hunters and frauds: * Contact your lender or mortgage loan servicer and try to negotiate a payment plan. * Work with reputable non-profit housing or financial counselors. * Report suspicious activity.

  • Foreclosure Rescue Scams - Consumer Protection - FTC

    The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home.

  • HUD Approved Housing Counseling Agencies

    HUD sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. This page allows you to select a list of agencies for each state below. You may search more specifically for a reverse mortgage counselor or if you are facing foreclosure, search for a foreclosure avoidance counselor.

  • Making Home Affordable Program

    The website contains information on the Making Home Affordable Program, which is part of the Obama Administration’s comprehensive Financial Stability Plan to address the financial crisis. Homeowners at risk of foreclosure can access self-assessment tools and calculators to check if they are qualified to a modification or a refinancing of their mortgage loans.

  • National Low Income Housing Coalition

    The National Low Income Housing Coalition is dedicated solely to achieving socially just public policy that assures people with the lowest incomes in the United States have affordable and decent homes. We hope you will use our website to learn more about housing affordability in your community and nationally, and to help you take action for better and more affordable housing choices.

  • Office of Policy Development and Research (PD&R)

    PD&R is responsible for maintaining current information on housing needs, market conditions, and existing programs, as well as conducting research on priority housing and community development issues. The Office provides reliable and objective data and analysis to help inform policy decisions. PD&R is committed to involving a greater diversity of perspectives, methods, and researchers in HUD research.

Publications Related to Foreclosure Law

  • HUD - Avoiding Foreclosure

    HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. Whether you're in foreclosure now or worried about it in the future, we have information that can help.

Articles on HG.org Related to Foreclosure

  • California's Homeowner Bill of Rights
    In January 2013, the California Homeowner Bill of Rights will take effect, providing unparalleled protection for homeowners across the state. This Bill, which is the first of its kind, will reform the foreclosure process and provide unique protection for homeowners.
  • As the FED Buys $40 Billion Worth of Mortgages a Month, Homeowners Need to Pay Attention
    Will the FED's actions affect you?
  • I Owe More than My House is Worth and Waiting on the Bank to Threaten Foreclosure --- What Can a Homeowner Do?
    The United States is going through one of the worst recessions since the Great Depression. Bankruptcy filings have increased, unemployment is high and home values have decreased exponentially since 2007 highs. Many home owners are finding they have a lot of debt, a house that is not worth what they owe, no ability to refinance and no ability to sell a home because they owe more than it is worth.
  • Government Agency Established to Curb Large Banks from Committing Fraud Is Now Targeting Homeowners
    Learn how a federal agency, made to protect homeowners, has now turned on them.
  • Robo-signing and its Connection to Fraudulent Foreclosures
    In the last few years, huge robo-signing scandals have been unearthed, causing thousands of foreclosures to be halted and investigations to be launched where investigators scrutinized foreclosure documents. Robo-signers were found to range from managers to temporary employees who had no understanding of what they were doing or the laws they were violating.
  • Judicial Foreclosure Creates Conflict for Redemption Rights and Fair Market Valuation
    Arizona borrowers have two foreclosure options: non-disclosure (aka trustee sale) and judicial foreclosures. Arizona borrowers are not accustomed to judicial foreclosures, as the vast majority of foreclosures in Arizona are non-judicial. However, there are both legal and strategic reasons why a lender might choose judicial foreclosure over a trustee sale.
  • Bankruptcy vs. Loss Mitigation
    There are differences between bankruptcy and loss mitigation when it comes to solving your mortgage problems. A Broward County foreclosure attorney explains. When you are facing foreclosure, you may consider alternative measures such as bankruptcy or loss mitigation. It is important to understand the differences in evaluating which option might be best for you.
  • How Bankruptcy Can Help Foreclosure
    Facing foreclosure is never easy, but there may be alternatives. If your lender is not willing to negotiate short sales or a loan modification, filing for bankruptcy may be able to help you avoid foreclosure. Many American families are unable to keep up with their mortgage payments. In some cases, money lenders are willing to let their borrowers file for loan modification or short sales.
  • Homeowner's Do Not Always Have to Tender (Pay Mortgage) Before Suing the Bank!
    Wrongful Foreclosure; Wrongful HAMP Denial: No tender is required to enjoin a foreclosure sale prior to the sale, in the event of [the bank’s] non-compliance with Civil Code § 2923.5 (Mabry v. Superior Court (2010) 185 Cal. App. 4th 208). However, even after the sale, a void, fraudulent or mistaken foreclosure process, sale or trustee’s deed can be set aside [or further enjoined].
  • Foreclosure Defense Basics
    This article details the basics of representing the homeowner facing a Maryland foreclosure. With the continued economic crisis, it is important for lawyers to know how to represent a homeowner in foreclosure. While much discussion has been devoted to deeds in lieu of foreclosure, short sales, and other ways to help a homeowner exit their home, not much discussion has been devoted to how to challenge a wrongful foreclosure. This article covers the basics.
  • All Real Estate Law Articles

    Articles written by attorneys and experts worldwide discussing legal aspects related to Real Estate including: construction law, eminent domain, foreclosure, homeowners association, land use and zoning, landlord and tenant law, property law, property management.