Laws On Foreclosure -
Understanding Foreclosure Laws By State
Each state has its own unique set of laws on foreclosure, laws that dictate the manner
of foreclosure in that state. One of the most important
distinctions in understanding foreclosure laws by state, is whether the
laws on foreclosure are conducted through the court system (judicial)
or outside the court system (non-judicial). Understanding
foreclosure laws by state, it is important to differentiate
between judicial or non-judicial foreclosure. Some states allow both types of foreclosure, but each
state usually has one type that is more commonly used. In
states that allow both types of foreclosure, the document
used to secure the mortgage loan usually determines whether
judicial or non-judicial foreclosure is used. Typically, a
deed of trust allows for non-judicial foreclosure while a
mortgage allows for judicial foreclosures, although some
laws on foreclosure include a clause allowing the lender to sell the
property without going through the court system in the case
of a default.
Below is a geo-graphical map that provides helpful
information to assist you in understanding the laws on
foreclosure, If you need help understanding foreclosure laws
by state feel free to contact one of housing counselors at
(877) 750-1433. Current laws on foreclosure allow both
judicial and non-judicial foreclosure, You can also double
check the laws on foreclosure in your area.
The trustee named in the deed of trust has to record a
public notice of default to initiate a non-judicial
foreclosure. If the owner in default does not pay off the
default within a certain time frame, the trustee can
schedule a public sale of the property. |
