Foreclosure law will differ on a state-to-state basis. The foreclosure laws in each state will vary in the degree of their strictness; some states are extremely specific when it comes to the acceptable procedures for foreclosing on and disposing of real estate, while others are much more flexible.
But most states do look to the details of the mortgage documents on a property as the foundation for their foreclosure law. The terms to which the borrower and lender agreed in the mortgage documents are binding, and they will almost always dictate the legal or extra-legal options which are to each party during the foreclosure proceedings.
When You Want To Invest In Foreclosures
The foreclosure law in a given state can also have a great impact on a prospective buyer’s ability to purchase foreclosed real estate as an investment. Tens of thousands of people have mastered the art of buying foreclosed homes and selling them in a short time for a fast profit. Should you be thinking about joining them, make sure I n advance that the foreclosure law in the states where the properties are located contains no stipulations which would interfere with your plans.
“Whenever dealing with foreclosures, it is important to consult a real estate lawyer in your state to ensure that the transaction goes through without any liability on your part.”
Be especially careful about foreclosure law as it pertains to encumbered properties; there are states which allow the home’s owner a grace period in which to clear any liens against his property and in doing so retain title. If you should purchase an encumbered property and the owner does manage to clear the liens, you could find yourself with nothing.
Hire A Professional Foreclosure Law Researcher
If you have decided to pursue foreclosure properties in some states, your safest alternative is to find a legal firm to research the foreclosure law in each of them. Trying to pore over the real property statutes in some states will not just consume a tremendous amount of time; it can leave you confused about the subtle differences in foreclosure law from state to state. It’s much better to have a legal professional familiar with property law examine the state codes for you, and be ready to advise you when you are ready to make your purchases.
You would be much better served by spending your time researching foreclosure lists than by researching foreclosure laws. First, find the promising properties, and when you have some them, give your selections to your legal professional so that he or she can begin researching the pertinent state foreclosure laws. Having the research done for you will cost something, but if it saves you from a serious blunder and allows you to buy only those properties on which you can profit, it will be money well spent.
There was a time when you thought, and your banker agreed, that you were a great bet to handle monthly payments on a mortgage for twenty or thirty years. You had that confidence once, and you can recover it. And when you do, you may find yourself surveying the foreclosures market to save money while putting yourself in your home once again!