Does a Foreclosure Notice Need to Be Served?
Many consumers do not have the money on hand to purchase a home or some other form of real property outright. Typically, a mortgage must be secured. The lender agrees to give the consumer money to buy the house and the consumer promises to repay the loan according to the mortgage terms. If the debtor misses payments, the lender may be able to foreclose on the property and force its sale to recoup what is owed. Notice must be given to the homeowner.
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Notice of Foreclosure
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The lender must serve notice of the foreclosure on the homeowner. "Service" is a legal term that refers to delivering a written document that notifies the homeowner of the foreclosure action. According to DebtWorkout.com, in a typical foreclosure, the bank often tries to contact the borrower when a payment is late and usually tries to work out a solution before sending the notice of foreclosure. The exact procedure, however, is typically governed by the terms of the mortgage contract.
Contents of the Notice
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Simply delivering a piece of paper to the homeowner that states "Foreclosure Notice" does not suffice to give the owner enough information about what the bank is seeking to do. The foreclosure notice must state the reason for the notice, the consequences for failing to abide by the notice and other information, such as the dates of the missed payments, the total amount due and when the debtor must pay the amount back in full.
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Lack of Notice as a Defense
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Lack of notice is a defense to foreclosure action. If the lender does not comply with the relevant notice provisions in the mortgage contract, the borrower may be able to defend against the action and even avoid the foreclosure due to lack of notice. Even if the initial action is dismissed because of lack of notice, the terms of the mortgage still stand and the lender can comply with the provisions and bring a valid action. Defending foreclosure under this defense may not completely prevent it, but it may buy the borrower more time.
Seeking Legal Assistance
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Foreclosure is a legal action and the consequences for the borrower can be dire. A borrower may lose her home, damage her credit and have trouble securing another loan to buy a home. If a borrower is facing a foreclosure action, she should seek legal assistance to ensure her rights are protected and that any applicable defenses are properly raised.
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