 |  |  |  |
| | | |
| Foreclosure Law and Regulations Rules regulating bank and government foreclosures What is mortgage? Lender protects itself by getting a mortgage that is a legal interest in the property. Lender forecloses the mortgage when homeowner or borrower cannot make his or her monthly mortgage installments. Foreclosing lender acquires the property and sells it to payoff the accumulated amount that the borrower owes. The entire amount of the loan becomes due and it must be paid it immediately. This is called "acceleration." What is foreclosure? Basically, there are two definitions of foreclosure in foreclosure law: Common use: lender’s act of attempting to take ownership. Technical use: foreclosing, terminating, the borrower’s equitable right of redemption. Right of redemption Borrower in default can redeem (reestablish his standing with the lender by paying the amount owed): equitable right of redemption (repay up to the date when legal proceedings begin, any money owed) statutory right of redemption (the added right under state legislation to repay, during a specified period “after” the legal proceedings, any amounts owed) Some laws and regulations affecting bank and government foreclosures by state: Arkansas California Colorado Connecticut Idaho Illinois Iowa Mississippi New Jersey New York Oregon Pennsylvania Texas Virginia Washington |
 |
| |
 |
| |
 |