| Foreclosure law varies from state to state with | | | | use mortgages, foreclosure law makes |
| regards to the exact process that must be | | | | foreclosure a judicial procedure. A lender must |
| followed in order for a bank or lender to foreclose | | | | prove to the court that the borrower has |
| on your home. Knowing the foreclosure law in | | | | defaulted on the loan, and that they, the lender, |
| your state can help you negotiate with your | | | | have made appropriate attempts to resolve the |
| lender and perhaps avoid foreclosure | | | | default with the homeowner. There is a definite |
| altogether.One of the largest differences in | | | | sequence of events that must be followed as |
| foreclosure law is whether a state uses | | | | prescribed in the foreclosure law, and knowing |
| mortgages or deeds of trust for real estate. | | | | that sequence in your state can help you |
| "Deed of trust" is a term that's not heard as | | | | understand your options in terms of resolving the |
| often as mortgage, but in essence, they have the | | | | issue before it goes before a judge.In states that |
| same function - they protect the lender from | | | | use a deed of trust rather than a mortgage, the |
| default on a loan that is secured by real estate. | | | | lender must go through certain steps of |
| The major difference is in the process the lender | | | | notification as required by foreclosure law in that |
| must use to obtain the right to recover your | | | | state, but does not need judicial permission to |
| property and sell it.When you sign a mortgage | | | | proceed with a sale or foreclosure on the |
| agreement with a lending institution, you retain the | | | | property to which they hold a deed in trust.States |
| deed to the property, and have full legal title to it | | | | whose foreclosure law requires judicial action |
| - but you allow the lender to place a 'lien' on it. If | | | | include: Alabama, Arizona, Arkansas, Connecticut, |
| you do not make the payments on the loan as | | | | Delaware, Florida, Montana, Nebraska, New Jersey, |
| agreed upon, the lender can foreclose on the | | | | New Mexico, New York, North Dakota, Ohio, |
| property.In some states, a deed of trust takes | | | | Oklahoma, Illinois, Indiana, Iowa, Kansas, Kentucky, |
| the place of a mortgage. With a deed of trust, | | | | Louisiana, Maryland, Michigan, Pennsylvania, South |
| you give the deed to the land or property to the | | | | Carolina, South Dakota, Vermont, Washington and |
| lender, but the lender can only use or sell the | | | | Wisconsin.Brian Shelton makes it easy to sell your |
| property if you default on the loan.In states that | | | | house fast. |