Beware Of Foreclosure State Laws In Your State

Foreclosure Law

Different States have different rules when it comes to foreclosures. Beware of them as this can cost you lots of headaches.

Some states allow for a redemption of the foreclosed property for several days after the sale.

Wikepedia offers a nice description of Foreclosure and explains various terminology.

"In the United States, there are two sorts of foreclosure in most common law states. Using a "deed in lieu of foreclosure," the bank claims the title and possession of the property back in full satisfaction of a debt, usually on contract. In the proceeding simply known as foreclosure (or, perhaps, distinguished as "judicial foreclosure"), the property is exposed to auction by the county sheriff or some other officer of the court. Many states require this latter sort of proceeding in some or all cases of foreclosure, in order to protect any equity the debtor may have in the property, in case the value of the debt being foreclosed on is substantially less than the market value of the immovable property (this also discourages strategic foreclosure). In this foreclosure, the sheriff then issues a deed to the winning bidder at auction. Banks and other institutional lenders typically bid in the amount of the owed debt at the sale, and if no other buyers step forward the lender receives title to the immovable property in return."

So check the Rules and Laws and make sure to consult a professional before you invest.

Ed

filed under: Foreclosure Law