A Homeowner's Rights During Foreclosure
State laws vary about the time frame and procedures required for a foreclosure. However, most foreclosures follow a common trend. After a homeowner fails to make his or her monthly mortgage payments for a period of time (typically 90 days or more) the lender may decide to start foreclosure proceedings in order to take complete ownership of the property which serves as collateral on the mortgage.
If an agreement cannot be worked out prior to foreclosure, then the homeowner has the right of redemption in some states. This statutory right allows the homeowner to regain ownership of the house by buying it back after the property has been foreclosed. Approximately half of the states have this right. The redemption laws allow the homeowner to regain ownership of the home paying the foreclosure sale price and a statutory interest rate to the lender. Usually, this right must be exercised within 6-12 months of the foreclosure sale.
Additional Foreclosure Articles
- How To Avoid Foreclosure
- The Mortgage Forgiveness Debt Relief Act of 2007
- Can I Use a Loan Modification Program in Order to Save my Home from Foreclosure?
- Renters Lose in Foreclosures
- Factors to Consider Before Deciding to Foreclose
- What are Credit Counseling Agencies?
- Foreclosure Protection for Victims of Hurricane Sandy
- Wage Garnishment Orders Cannot Garnish It All
- What are my obligations if I co-sign a loan for another person?
- What is the Fair Credit Billing Act?
- The Federal Reserve Board's New Credit Card Protections for the Consumer
- Secured Transactions: Which Party is Secure?
- What are Negotiable Instruments?
- Different Types of Foreclosure
- How Can a Creditor Repossess Property?
- The Foreclosure Timeline
- Defenses to Repossession
- Understanding the Foreclosure Process
- A Plain Language Explanation of Your Options for Avoiding Foreclosure
- Alternatives to Foreclosure
- What to do About Your Mortgage When You're Facing Money Problems
- When Can Property be Repossessed?
- Bankruptcy or Foreclosure?
- Ten Tips for Avoiding Foreclosure