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The Laws For Non-Judicial Foreclosure Are Tricky – 5 Ways To Deal With Them

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The Laws For Non-Judicial Foreclosure Are Tricky – 5 Ways To Deal With Them

Most of the foreclosures are non-judicial in the deed of trust or power of sale document. The party foreclosing should file their debt-proof ownership along with default, with the public trustee looking after the process. However, a non-judicial foreclosure is not available for traditional mortgages.

Know how to protect your rights with a skilled and experienced lawyer

Foreclosure laws differ in every state of the USA. It is prudent for you to know them so that you can protect your rights in the process:

  • Foreclosures can be non-judicial or judicial, with the latter being the most common.
  • Understand what your rights are in either case.
  • Know what is expected to happen later, such as whether a deficiency judgment is possible.

To understand the above, you must consult an experienced lawyer specializing in state property laws. Check to see if your lawyer has a track record in the field.

Laws heavily regulate the non-judicial foreclosure process

The rules relating to non-judicial foreclosures are strict and intensely regulated. Before the foreclosure, the lenders should send a notice to the property owner. The lenders should wait for a specific period before the property auction.

You can find all of the laws relating to foreclosure Revised Statutes; however, they change often, so you should check them regularly. The ways the courts and legal agencies work changes, so ensure you are clear about them.

Some rules can change inside the state, so consult an experienced and skilled lawyer or professional in the field if you are faced with the possibility of foreclosure. Click here to know more http://integrityhomebuyerscolorado.com/

Penalties for not following the foreclosure laws

If anyone fails to abide by the foreclosure laws the fines can go up to $25,000 and up to a year in jail. It is prudent to consult a reasonable attorney and create a contract that protects your rights under state laws.

Short-sale and foreclosure    

Borrowers can avoid foreclosure with a short sale. The borrower sells the house and pays a part of the mortgage balance left with the loan. In this process, the home’s sale price is less than the remaining mortgage balance. To maximize the sale proceeds; the accepted home offer should be as close to the fair market values as possible.

What is a deficiency waiver?

Depending upon the above, the borrower might be required to make some financial contribution to the remaining payment balance. However, after the completion of the short sale, the borrower does not need to pay the balance remaining on the mortgage, known as a deficiency waiver. Some tax consequences are linked to the forgiven debt; these borrowers can consult a tax professional for extra guidance and aid.

If you are faced with foreclosure and want to avoid it with a short sale, consult a reasonable attorney for guidance. Ensure all the documentation is complete and in order. Be aware of state laws as they change often, so your rights are protected in the process. What are you waiting for? Get in touch with the experts to know more about these rules and regulations.

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