About Foreclosure Rights for Homeowners

Foreclosure is a court proceeding that must be followed extremely carefully, or else the homeowner's right will not be protected. Despite the feeling of helplessness and that there is nowhere to turn, homeowners do have specific rights they are able to exercise during proceedings.

Warning

Always check with a lawyer about the specific foreclosure rights and laws because they are complex and confusing to most homeowners. Never attempt to defend a foreclosure lawsuit on your own unless you are experienced in law, real estate and matters of foreclosures.

Considerations

Remember, defending a foreclosure lawsuit is expensive. Defendants are not only responsible for legal fees, but also for other fees such as appraisals. Inquire with a lawyer about what fees need to be prepared for so more debt trouble does not occur.

Types

Are you facing a strict Foreclosure? A strict foreclosure is a situation where "law days" are assigned to all defendants listed in the foreclosure case. Once the law days have passed, the defendant loses all rights to the property being foreclosed upon. Depending on the judge presiding over the case, these law days can be assigned anywhere from three days to over nine months after the case goes before them. Homeowners have up until their last law day to pay off all debt related to the foreclosure lawsuit.

Time Frame

Law days are defined as how many days the homeowner has until the final deadline to pay off their foreclosure. How these dates are assigned changes from state to state, jurisdiction to jurisdiction.

Types

Do you have a foreclosure by sale? Foreclosures by sale are situations where the judge sets the sale date of the property being foreclosed upon. Homeowners who have homes without a lot of equity should not purposely seek out foreclosures by sale. The property is auctioned to the highest bidder.

Effects

All money brought in by the auction above and beyond the costs related to the auction and the money owed to the lender goes to the defendant. This auction can be stopped if the defendant pays off the auctions fees, as well as the money owed to the lender prior to the auction date.

Significance

In the case of both strict foreclosure and foreclosure by sale, the right to sell or refinance the property being placed under foreclosure can be exercised in order to pay off the debt in full.

Resources

• Frequently Asked Questions About Foreclosures