The Legal Rights of Homeowners in Foreclosure
Facing a foreclosure can be a daunting emotional and financial experience, especially considering the complexity and obtuseness of the laws governing this process. However, homeowners do have certain rights when it comes to having their homes foreclosed on. Facing a foreclosure alone is hard enough as it is, and you should always seek the advice of a real estate attorney if you need help with a foreclosure.
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Judicial or Non-Judicial Foreclosures
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Your rights in a foreclosure are largely dependent on what kind of foreclosure it is, which in turn is dependent on what your state allows. There are two kinds of foreclosures: judicial and non-judicial. In a judicial foreclosure, the lender has to sue you in court and convince the court that you have defaulted on the loan. In a non-judicial foreclosure, the lender does not have to sue you but does have to notify you and proceed to sell your home according to the process established by state law.
Notice
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As a homeowner, you have the right to be notified of any foreclosure action taken against you. In a judicial foreclosure, the lender has to follow the same steps as in any other law suit, meaning you must be served with a copy of the foreclosure action and notified when your case is scheduled for court. In a non-judicial foreclosure, the lender must send a notice of default or notice of sale, depending on your state, and can only sell the house once a specific time period has passed.
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Renegotiation Rights
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Your mortgage is a loan, and like all loans it is based on a contract that you and your lender are free to renegotiate as you see fit. If, for example, your lender begins foreclosure proceedings, you can contact the lender and try to arrange for a repayment system or negotiate new loan terms. There is no guarantee you will be able to stop the foreclosure, but you are free to try as you wish.
Redemption Rights
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One of the more important rights available to you as a homeowner facing foreclosure is the right of redemption. This right is a statutorily granted time period that gives you a specific amount of time in which to pay the mortgage in full and keep your house, even after the foreclosure has been granted. The amount of time you have depends on the state in which you live, and not all states allow for redemptions.
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References
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