What are the proceedings of a foreclosure?what are the legal rights of the person being foreclosed upon?
Question:
Answer:
It depends on the state. Generally, the lender first makes a demand and accelerates the loan. Then, the trustee (if a deed of trust state) or the mortgagee (if a mortgage state) gives public notice of the sale (found in the legal notices section of your newspaper). The sale is often "cried" on the courthouse steps.
The person being foreclosed upon can pay up to date and sometimes avoid the foreclosure. Another option which may delay or stop the foreclosure is bankruptcy, if you are eligible. In some states, the person being foreclosed upon has a "right of redemption" which gives them a certain period of time to "redeem" the property from the foreclosure buyer by re-paying the foreclosure buyer his purchase price. Most mortgage documents say that you waive this right, but it is not uncommon for states to say that certain rights of redemption are non-waivable. For a full discussion of rights of a person being foreclosed on, they should seek the advice of an attorney who can assess their personal situation and the rights and remedies available under the laws of the state and the governing documents.
This article explains the process of foreclosure. My advice is, avoid it if at all possible. Foreclosure strips you of wealth and credit. It can leave you with a deficient balance owed also!
If you are facing foreclosure you may want to consider filling for chapter 13 bankruptcy. You will be able to keep your house and everything you own. You just make payments to the court to pay your debts. Check with your lawyer.
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