Foreclosure Process Differs from State to State

October 23rd, 2007

Filed under: Foreclosure Business, Foreclosure Crisis, Foreclosure Homes, Foreclosures, foreclosure filings

The foreclosure has taken the country by storm. The story began with the introduction of the sub-prime loan to accommodate those who, due to bad credit history, could not avail of the prime loans. In the latter one must make a down payment and show proper source of income in proportion to the loan being taken. In the sub-prime the initial terms were extremely lenient. This led to many taking it. A housing boom exploded. But when the honeymoon period of grace expired and the floating rates began to double the borrowers failed in monthly payments. The lenders then served them with foreclosure notices.

In USA, the foreclosure process is not uniform in all the states. For instance in Georgia the lender can take over the house within a month. Here it is not even necessary to go through the court corridors. All that is required is an advertisement in the newspaper announcing the date of the forthcoming sale.

But in the Sunshine State the lenders have to file a lawsuit if they want to evict borrowers. The foreclosure process does not start operating effectively until the borrower has missed out on five consecutive payments, says legal expert Kingcade of Kingcade & Garcia of Miami. Thus statistics may not expose the real picture of the foreclosure crisis in Florida. It ranks second in the national foreclosure race but experts opine that the actual situation is worse.

People who are not paying due to various reasons are being sued in court by the lenders. From the date of filing the lawsuit it takes anything from 60 to 90 days to evict the occupants. The good thing for house owners here is that since the process goes through the courtroom, they have a fighting chance to reverse the odds. Kingcade explains that foreclosure lawsuits are not exceptional – these are just like any other of the type. If house owners appoint a lawyer and put up a fight the chances are that even if the result is negative they will be able to stay on for sometime more than otherwise. The borrower cannot be evicted until the court dispenses with the suit.

To cite an example, Kingcade mentions a client of his who continued to live 22 months since the initiation of foreclosure proceedings against him. In money terms it means 2 months without paying mortgage dues!

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