National Buyer’s Agent Association Blog 

There are five foreclosure laws that you need to know about. Regulations relating to foreclosure differ by state, so check your state's statutes.

There are five foreclosure laws that you need to know about.  Regulations relating to foreclosure differ by state, so check your state's statutes.  You can find out more by looking at a website such as www.forclosurelaw.org.  The five foreclosure laws are as follows:

1. Notification of intent to foreclose.  Many states require that a lender notify the borrower in advance (30 days) before obtaining a court judgment to foreclose.
2. Nonjudicial foreclosure.  Many states permit the lender to add a clause to a mortgage document that permits the lender to foreclose and sell the property without obtaining court approval.
3. Deficiency judgment.  Some states permit a lender that forecloses on a mortgage to file a judgment against the borrower entitling the lender to collect from the defaulted borrower any amount of the outstanding mortgage not covered by the sale price.
4. Right of redemption.  Some states, like New Jersey, permit a defaulting borrower to satisfy the loan default and recover the property if done within a specified amount of time after the property is sold.
5. Military service.  If the borrower or the borrower's spouse is on active military duty, the Civil Relief Act of 2003 prohibits a lender from foreclosing on the mortgage.  In addition, the borrower may qualify for an interest rate reduction or even a temporary suspension of mortgage payments.

If you are aware of these foreclosure laws, you can possibly avoid them.  You can also speak with a Buyer's Agent if you have any questions and they can give you all the advice that you need to help you avoid foreclosure.