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