Welcome to Foreclosure Guide
Mortgage Foreclosure Law Practice Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Definition of Foreclosure on Default of Payment of Property Loans
from:Foreclosure is a legal term often on the minds of many American homeowners. The average American family works hard to afford a home in which their family can live comfortably. Most families do not have the cash up front to pay for their dream house in full. They will seek a loan from a financial lending institution such as a bank or a mortgage company to buy this home.
To secure the loan, these financial lending institutions must be certain that they will get back their money back. Since a good paying job does not guarantee that a loan of this magnitude will be paid back, they require what is known as collateral, an asset they can seize in lieu of payments if the loan is in default (no longer being paid back).
Normally the home that is being purchased with the loan is put up as collateral and if the mortgagor (person seeking the loan) does not pay back the loan to the mortgagee (money lender, borrower), the house goes into foreclosure. The money lending institution may obtain a court order to proceed with the foreclosure and repossess or seize the house in lieu of repayment of the loan.
In some instances the financial lending institution may attempt foreclosure on a home or other property, but if the borrower repays the loan, a court of equity may rule in favor of the borrower who at that point will be able to keep the home or property in question.
The contract between the financial lending company and the borrower is called a mortgage or deed of trust. When a contract has been entered, effectively the lending company has agreed to give the borrower a certain sum of money in which to purchase the said property. The borrower agrees to pay this money back (signs a promissory note). The contract will also stipulate that a lien will be placed on the property meaning that the financial lending company has a right to seize the property (repossess it) if the loan is not repaid in the time frame that is stipulated and according to the conditions set out in the contract.
The process of foreclosure is used in any contract whereby real estate, homes, farms, land, and other immovable property has been obtained through a mortgage, and the mortgage holder has defaulted on the payments.
Judicial Foreclosure is available in all the American states. When the borrower defaults on the loan, the property is sold. The proceeds from the sale of the property first goes to repay the balance on the existing loan, then to any other lien holders, and finally to the borrower if any proceeds are left over. All transactions are done legally through the court system.
Foreclosure by power of sale is sometimes added as a clause in the mortgage contract that defines the foreclosure procedure without court intervention. This procedure follows the same order as the Judicial Foreclosure however faster since the courts are not involved.
Mortgage Foreclosure Law Practice News
Firm Targets Calif. Homeowners With Foreclosed 2nd Mortgages - KGTV San Diego
 News10.net | Firm Targets Calif. Homeowners With Foreclosed 2nd Mortgages KGTV San Diego Critics of Heritage Pacific say the company's central tactic is forcing settlements from people who can't afford a drawn-out legal fight and who don't know the details of California law. The company has sued people with second-mortgage debts of less ... Texas firm targets homeowners with foreclosed 2nd mortgages |
Arizona High Court Rejects 'Show Me the Note' Claim in Foreclosure Litigation - JD Supra (press release)
Arizona High Court Rejects 'Show Me the Note' Claim in Foreclosure Litigation JD Supra (press release) Washington Mutual Bank, NA et. al should have a significant impact on pending and future mortgage foreclosure-related litigation in Arizona, as it flatly rejects a legal theory frequently advanced by borrowers in an attempt to avoid foreclosure. |
Federal Judge Agrees With MFI-Miami and Northern Michigan Attorney -- Fannie ... - MarketWatch (press release)
Federal Judge Agrees With MFI-Miami and Northern Michigan Attorney -- Fannie ... MarketWatch (press release) Select Portfolio Services and The Federal National Mortgage Association (docket # 1:12-cv-177), and is allowing this to go to trial. Judge Jonker agreed with two points that the Bocardo's attorney, Jason Jenkinson of the Northern Michigan Law Center ... |
Foreclosure Lawsuit Questions Dog Mayor - LoanSafe
Foreclosure Lawsuit Questions Dog Mayor LoanSafe (Source: Arthur Foulkes The Tribune-Star, Terre Haute, Ind. (MCT) — Terre Haute Mayor Duke Bennett said Tuesday he is “100 percent” certain the foreclosure suit filed against him by GMAC Mortgage on his eastside home will be resolved within the next ... Terre Haute mayor fighting foreclosure lawsuit |
Experts: Md. foreclosure programs prolong crisis - Washington Examiner
 Business Insider | Experts: Md. foreclosure programs prolong crisis Washington Examiner Blomquist said Maryland's surge in foreclosures appears to be the result of a state law, implemented in July 2010, that aimed to help people facing foreclosure refinance their mortgages and stay in their homes. The law requires lenders to file ... Why This May Be the Ideal Time to Buy Real Estate Banks Dodge Expected Wave of Foreclosures Foreclosures tick up in the Buckeye state |
React & Act: What is second-mortgage debt? - California Watch
 California Watch | React & Act: What is second-mortgage debt? California Watch Heritage Pacific Financial sued Trejo to keep a bankruptcy judge from erasing an $88000 second-mortgage note against a house Trejo lost through foreclosure in 2008. Trejo won, but the firm has appealed. To understand Rick Jurgens' article on the ... |
MetLife targets global growth, gets bank subpoenas - Reuters
MetLife targets global growth, gets bank subpoenas Reuters MetLife also said it had received two subpoenas in April and May from regulators looking into mortgage servicing and foreclosure practices at its banking unit. The company had shut its mortgage businesses by then, and is in the process of selling the ... |
Ore. Lawmakers OK Foreclosure Mediation Funds - KTVZ
Ore. Lawmakers OK Foreclosure Mediation Funds KTVZ SB 1552 also outlaws the practice of dual-track foreclosures in which banks enter conversations with homeowners to negotiate terms of a loan while simultaneously beginning the foreclosure process. “The loss of homes across Oregon has been devastating ... |