Have you recently been served with a foreclosure notice? Talking with our professionals allows you to learn about the foreclosure process, alternatives to foreclosure and begin the process of regaining control of your finances.
We Act Quickly To Defend Your Rights.
When you are served a foreclosure, there is only a limited amount of time for you to respond properly, or else your home is in serious jeopardy. You have rights. Do not allow this to happen!
At The Law Center for Debt Solutions, we understand how to help homeowners who are facing foreclosure. It is our goal to provide you with the legal counsel that will help you avoid foreclosure or that will offer you the best chance at a brighter financial future. When you work with an attorney at our firm, you have the backing of our years of experience and knowledge regarding mortgage law and foreclosures. From dealing with your lender to dealing with the legal system, we have every base covered.
At The Law Center for Debt Solutions, our goal is to help you fight the foreclosure process and secure a brighter financial future for you and your family. Our award-winning attorneys have successfully helped thousands of homeowners square off against their lenders, and are backed up by years of knowledge of experience in mortgage law and foreclosure defense.
Judicial Versus Non-Judicial Foreclosure
In many discussions about mortgage foreclosures the terms judicial and non-judicial foreclosure are used. They involve very different processes. These terms refer to how individual states handle real estate foreclosure. Under both systems, time frames and terms vary widely from state to state. The following is a brief, general description of both processes. The accompanying chart (see last page) depicts the varying time frames involved in the judicial foreclosure process.
A judicial foreclosure is a court proceeding that begins when the lender files a complaint and records a notice in the public land records announcing a claim on the property to potential buyers, creditors and other interested parties. The complaint describes the debt, the borrower’s default and the amount owed. The complaint asks the court to allow the lender to foreclose its lien and take possession of the property as a remedy for non-payment.
The homeowner is served notice of the complaint, either by mail, direct service or publication of the notice. The defendant (borrower) is permitted to dispute the facts (such as show that payments were made), offer defenses or present counterclaims by answering the complaint, filing a separate suit, and / or by attending a hearing arranged by the court. If the defendant shows there are differences of material facts, a trial will be held by the court to determine if foreclosure should occur. In the vast majority of cases, however, the foreclosure action is undisputed because the borrower is in default and cannot offer facts to the contrary. If the court determines the homeowner did default and that the debt is valid, it will issue a judgment in favor of the servicer for the total amount owed, including costs for the foreclosure process. In order for the judge to determine the amount of the judgment, the servicer submits paperwork through an affidavit that itemizes the amounts due.
Next, the court will authorize a sheriff’s sale. The sale is an auction of the property open to anyone, and must be held in a public place. Procedures for a sheriff’s sale in each locality differ, but the individual with the highest bid is granted the property. After the sale is confirmed by the court, the deed, which transfers ownership, is prepared, recorded and the highest bidder becomes the owner of the property. In most cases, the highest bidder is the servicer, who takes title of the property. The servicer then can sell the property. At this point, it is called real estate owned (REO).
Twenty two states use judicial procedures as the primary way to foreclose.
Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.
The requirements for non-judicial foreclosure are established by state statute; there is no court intervention. When the default occurs, the homeowner is mailed a default letter and in many states a Notice of Default is recorded, at or about the same time. The homeowner may cure the debt during a prescribed period; if not, a Notice of Sale is mailed to the homeowner, posted in public places, recorded at the county’s recorder’s office, and published in area newspapers / legal publications. When the legally required notice period (determined by each state) has expired, a public auction is held and the highest bidder becomes the owner of the property, subject to recordation of the deed. Prior to the sale, if the borrower disagrees with the facts of the case, he or she can try to file a lawsuit to enjoin the trustee’s sale.
The term foreclosure mediation refers to any instance in which a third party helps others reach an agreement surrounding the foreclosure process.
Foreclosure mediation is a form of alternative dispute resolution, which is a way of resolving disputes between two or more parties with effective results. Mediation can anticipate difficulties between parties before conflict emerges
Why Would Mediation Can be a Good Strategy?
Mediation increases the control the parties involved will have over the resolution and as a result mediation is more likely to produce a result that is mutually agreeable for all parties involved. As a result of mutually agreeable interests, the compliance with mediated agreements is usually very high. During the mediation process of a foreclosure, both parties are typically ready to work toward a mutual resolution. In most cases, the fact that both parties are willing to mediate, means they are ready to move their position. Mediation is fully enforceable in a court of law. However, because both parties involved have mutual interest, they do not have to hire third-parties to force compliance with the agreement in a court of law and as a result costs are usually kept low.
To receive your free consultation, call The Law Center for Debt Solutions at 877-977-2117