Somewhere around day 90, the foreclosure process will really pick up steam. The lender will generally refer the case to its foreclosure department at this point. This is when legal proceedings usually begin.
Depending on the state, the lender’s lawyers of foreclosure representative may start filing court papers and recording a legal notice of the foreclosure status. This may be published in the newspaper. Hearings may be scheduled during this period.
In the judicial foreclosure process, the lender must file a complaint that declares its intent to take legal action against the borrower. The court will require the lender to produce evidence that the borrower has defaulted on her loan agreement. Because the mortgage contract allows foreclosure if the agreement terms aren’t met, the process can begin unless, of course, the borrower can prove the lender wrong and show she has abided by the contract terms.
This judicial process is the common method in “lien theory” states. The lien theory means the mortgage contract itself promises the title of the property in question to the lender. Although the lender doesn’t actually hold the title, it is assumed to be the rightful owner by virtue of the mortgage contract until the terms of the deal have been fulfilled.
However, the lender must ask the court for permission to foreclose on the property. Although a jury trial ils possible, it’s very rare. In some judicial states, a summary judgment hearing is held. At this hearing, a judge will almost always rule in favor of the lender, unless the defendant presents compelling evidence showing she’s upheld her end of the deal.
In other judicial states, the lender pleads with the court to summon the borrower to court to explain her case. If the borrower doesn’t provide sufficient evidence, or fails to appear, the judge will usually rule in favor of the lender.
State laws vary greatly, as do the timeframes involved. That’s why it is difficult to provide a specific timeline for the foreclosure process that would be accurate nationwide. Court timelines can vary, as do redemption periods when a borrower can still reclaim slightly more patient that another, so each bank’s cutoff point as to how far they’ll let a borrower go into default can be different.
Somewhere around day 90, the foreclosure process will really pick up steam. The lender will generally refer the case to its foreclosure department at this point. This is when legal proceedings usually begin.
Depending on the state, the lender’s lawyers of foreclosure representative may start filing court papers and recording a legal notice of the foreclosure status. This may be published in the newspaper. Hearings may be scheduled during this period.
In the judicial foreclosure process, the lender must file a complaint that declares its intent to take legal action against the borrower. The court will require the lender to produce evidence that the borrower has defaulted on her loan agreement. Because the mortgage contract allows foreclosure if the agreement terms aren’t met, the process can begin unless, of course, the borrower can prove the lender wrong and show she has abided by the contract terms.
This judicial process is the common method in “lien theory” states. The lien theory means the mortgage contract itself promises the title of the property in question to the lender. Although the lender doesn’t actually hold the title, it is assumed to be the rightful owner by virtue of the mortgage contract until the terms of the deal have been fulfilled.
However, the lender must ask the court for permission to foreclose on the property. Although a jury trial ils possible, it’s very rare. In some judicial states, a summary judgment hearing is held. At this hearing, a judge will almost always rule in favor of the lender, unless the defendant presents compelling evidence showing she’s upheld her end of the deal.
In other judicial states, the lender pleads with the court to summon the borrower to court to explain her case. If the borrower doesn’t provide sufficient evidence, or fails to appear, the judge will usually rule in favor of the lender.
State laws vary greatly, as do the timeframes involved. That’s why it is difficult to provide a specific timeline for the foreclosure process that would be accurate nationwide. Court timelines can vary, as do redemption periods when a borrower can still reclaim slightly more patient that another, so each bank’s cutoff point as to how far they’ll let a borrower go into default can be different.