Foreclosure is a legal process in which the lender strives to recover the loan balance from the borrower who has stopped paying the creditor by forcing the sale of the asset to be used as collateral for the loan.
Formally, mortgagee lenders, or other lienholder, obtain the right of a fair mortgage lender, either by court order or by legal operations (after following certain legal procedures).
Usually the lender obtains a security interest from a lender who mortgages or promises a home-like asset to secure the loan. If the borrower fails and the lender tries to take back the property, an equity court can give the borrower the equivalent right of redemption if the borrower pays back his debt. While this fair right exists, it is the cloud on the title and the lender can not be sure that they can withdraw the property. Therefore, through the foreclosure process, the lender seeks to immediately terminate the right of equal redemption and take both legal titles and property rights to the property at a modest cost. Other lien holders may also cover the rights of the owner on redemption for other debts, such as for pending taxes, bills or valuations of unpaid householder associations or dues of overdue homeowners.
The foreclosure process applied to residential mortgage lending is a bank or other secured creditor who sells or retrieve some real property right after the owner fails to meet an agreement between the lender and the borrower called "mortgage" or "deed of trust". Generally, a mortgage violation is the default in the payment of a promissory note, secured by a lien on the property. When the process is complete, the creditor can sell the property and keep the proceeds to pay off the mortgage and legal fees, and it is usually said that "the lender has seized his mortgage or his lien". If a promissory note is made with a liability clause and if the sale does not bring enough to cover the principal balance and expenses available, then the mortgagee may file a claim for a deficit assessment. In many states of the United States, items are included to calculate the number of deficiency assessments including loan principal, accrued interest and attorney's fees minus the lender's bid amount on foreclosure sales.
Video Foreclosure
Jenis
Mortgage holders can usually start foreclosures at the time specified in mortgage documents, usually some time period after a default condition occurs. In the United States, Canada, and many other countries, there are several types of foreclosures. In the US, two of them - that is, sales of justice and with sales force - are widely used, but other modes are possible in some states.
Judicial
A foreclosure is with a judicial sale, commonly called seizure of court , involving the sale of a mortgaged property under court supervision. The proceeds go first to meet the mortgage, then the other lien holders, and finally the mortgagor/borrower if any results are left. Judicial seizure is available in every US state and is required in many countries. The lender starts the court seizure by filing a lawsuit against the borrower. As with all other legal actions, all parties should be notified of foreclosures, but notice requirements vary significantly from one state to another. Court decisions are announced after the defense exchanges at trial (usually short) in state or local courts. In some rather rare instances, foreclosures are filed in federal courts.
Unofficial
Foreclosure with sales force, is also called non-judicial confiscation , and endorsed by many countries if the sales force clause falls into the mortgage or if a form of trust with such clauses being used instead of actual mortgages. In some U.S. states, such as California and Texas, almost everything called mortgages is actually an act of trust. This process involves the sale of property by a mortgage holder without court supervision (as outlined below). This process is generally much faster and cheaper than foreclosure by judicial sales. As in judicial sales, mortgage holders and other lien holders are the first and second prosecutor of sales proceeds.
Strict
Other types of foreclosures are considered small due to their limited availability. Under strict confiscation , available in some states including Connecticut, New Hampshire and Vermont, if the mortgagee wins the court case, the court orders a default that fails to pay the mortgage within a certain period of time.. If the mortor fails to do so, the mortgage holder obtains property rights over the property without the obligation to sell it. This type of foreclosure is generally only available when the property value is less than debt ("under water"). Historically, strict foreclosures are the original method of foreclosure.
Maps Foreclosure
Acceleration
Acceleration is a clause normally found in Sections 16, 17, or 18 of the mortgage. Not all accelerations are the same for every mortgage, so it depends on the terms and conditions between the lender and the required borrower. When a term in the mortgage has been broken, the acceleration clause comes into effect. This may state the entire debt payable to the creditor if the borrower (s) is to transfer the title in the future to the buyer. The clause in the mortgage also instructs that notification of acceleration should be given to the obliged borrower (s) who signed the Memorandum. Each mortgage gives a term for the debtor (s) to cure their loan. The most common time period is given to debtors usually 30 days, but for commercial property can be 10 days. The notification of acceleration is called a Request Letter and/or Breach. In the letter it informs the Borrower that they have 10 or 30 days from the date on the letter to repay their loan. Request/Breeding Letter sent by Certified and Regular mail to all reputable Borrower addresses. Also in the mortgage acceleration the lender must provide an estimated payment offer of 30 days from the date of the letter. This letter is called FDCPA (Fair Debt Collections Practices Acts) and/or Initial Communication Letter. After the Borrower (s) receive two letters providing a period of time to refund or repay their loan, the lender must wait until the time is expired to take further action. When 10 or 30 days have elapsed it means acceleration has ended and the Lender can move forward by seizing the property.
The lender will also include unpaid property taxes and delinquent payments in this amount, so if the borrower has no significant equity, they will owe more than the initial amount of the mortgage.
The lender may also speed up the loan if there is a transfer clause, requiring the lender to notify the lender of any transfer, either; rent-options, rent-hold of 3 years or more, land contracts, agreements for deeds, transfer of property or interest in property.
Most (but not all) mortgages today have an acceleration clause. The mortgage holder without this clause has only two options: either to wait until all payments are due or convince the court to force the sale of some parts of the property in lieu of payments that have matured. Or, the court may order the property sold subject to mortgage, with proceeds from the sale go to the repayment owed the owner of the mortgage.
Process
The foreclosure process can be fast or long and varies from state to state. Other options such as refinancing, short sales, alternative financing, temporary arrangements with lenders, or even bankruptcy can bring homeowners by avoiding foreclosures. Websites that can link individual borrowers and homeowners to lenders are increasingly being offered as a mechanism to bypass traditional lenders while fulfilling payment obligations for mortgage providers. While there is little difference between states, the foreclosure process generally follows a timeline beginning with an early missed payment, moving to a scheduled sale and finally a redemption period (if available).
Strict and judicial
In the United States, there are two types of foreclosures in most countries that are described by general law. By using "deeds in lieu of foreclosure", or "tight seizure", noteholder claims ownership and ownership of the property with full satisfaction of the debt, usually on contract.
In a process known only as foreclosures (or, perhaps, differentiated as "judicial seizures"), lenders should sue defaulted borrowers in state courts. After a final decision (usually a short decision) for the lender's interest, the property must be auctioned by the county sheriff or another court clerk. Many countries require this sort of proceeding in some or all cases of foreclosures to protect any debtors' equity possible on the property, in the case of a debt value being foreclosed substantially less than the market value of real property; This also hinders strategic foreclosures by lenders who want to acquire property. In this foreclosure, the sheriff then issues the deed to the winning bidder at the auction. Banks and other institutional lenders can bid in the amount owed on sales but there are a number of other factors that can affect the offer, and if no other buyers move forward, the lender will receive property rights over the real property.
Unofficial
Historically, most court foreclosures are not countered, as most debtors fail to have no money to hire a lawyer. Therefore, the US financial services industry has been lobbying since the mid-19th century for faster foreclosure procedures that will not clog state courts with undisputed cases, and will lower the cost of credit (since there should always be a cost to recover collateral built in). The lender also believes that taking out-of-court foreclosures is actually better and less traumatic for delinquent borrowers, as he avoids the effects within the terror of being sued.
In response, a small part of the US state has adopted a non-judicial seizure procedure in which the mortgagee (or more commonly the mortgage tenant lawyer, designated agent, or guardian) provides the default notification debtor (NOD) and mortgage intent to sell real property in forms specified by state law; NOD in some states should also be recorded against the property. This type of foreclosure is commonly called an "official" or "unofficial" seizure, which goes against the "judiciary", because the mortgagee does not need to file a real suit to start a foreclosure. Some countries impose additional procedural requirements such as having documents stamped by court clerks; Colorado requires the use of a "trustee" of a local government, a government official, rather than a personal guardian who specializes in foreclosure. However, in most states, government officials involved in non-judicial confiscation are regional recorders, who only record pre-sales notices and deeds of guardians on sale.
In this type of seizure of "sales power", if the debtor fails to heal a default, or uses another legitimate means (such as filing for bankruptcy for a temporary stay seizure) to stop the sale, the mortgagee or his representative undertakes a public auction in a manner similar to a sheriff's auction. In particular, the lender alone can bid for the property at the auction, and is only the bidder who can make a "credit offer" (bid based on the debt itself) while all other bidders must may be (or in a very short time) present an auctioneer with cash or cash equivalent as a cashier's check. In May 2012, the US Supreme Court, resolving uncertainty surrounding the rights of creditors who are guaranteed to bid credit in sales under the Chapter 11 bankruptcy plan. At RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 566 US ______ (2012), the Court finds that it is obliged to interpret the bankruptcy code "clearly and allegedly using established legal construction principles" to resolve the uncertainty of continuing credit offerings under chapter 11 to plan and enforce secure creditor rights.
The highest bidder on the auction becomes the owner of the real property, free and clear from the interests of the previous owner, but may be burdened by a higher lien than the foreclosed mortgage (eg, senior mortgage, unpaid property taxes, weed/demolition). Further legal action, such as expulsion, may be required to gain ownership of the premises if the former occupant fails to vacate voluntarily.
Defense
In some states, especially where only judicial foreclosures are available, the constitutional problems of legal proceedings have affected the ability of some lenders to close. In Ohio, the federal district court for the Northern District of Ohio has canceled many foreclosure actions by lenders due to the creditor's inability to allege that they are the real parties in interest. The same thing happened in the case of the Colorado district court in June 2008.
In contrast, in six federal court circuits and the majority of non-judicial confiscatory states (such as California), legal proceedings have been legally determined to be frivolous defenses. The whole point of non-judicial seizure is that no state actors (ie, courts) are involved. The constitutional right of the legal process protects people only from violations of their civil rights by state actors, not private actors. (The involvement of local officials or recorders in the recording of required documents has been deemed insufficient to require due process of law, as they are required by law to record all documents presented that meet minimum formatting requirements and are discouraged to decide whether certain confiscations should proceed.)
A further reason is that under the principle of contract freedom, if the debtor wants to enjoy additional protection from the formalities of judicial foreclosure, it is their burden to find lenders willing to lend secured by conventional conventional mortgages rather than a trust deed with sales powers. The Court has also dismissed as a reckless argument that legislative acts merely authorizing or regulating the process of non-judicial confiscation thereby altering the process itself into state action.
In turn, since there is no right to legal proceedings in non-judicial confiscation, it has been held that it is irrelevant whether the borrower has an actual notice (ie, subjective awareness) of the foreclosure, during the expropriation takeover performing duties as determined by law in an attempt to give notice.
Fair foreclosure
"Tight seizures" available in some states are the same rights of a foreclosure sale buyer. The buyer must file a petition to the court for a decision that cancels the right of the junior lien holder of the senior debt. If the junior lien holder fails to file an objection within a legally determined time frame, his lien is canceled and the buyer title is removed. This effect is similar to the strict seizure that occurred in the UK general equality law in response to the development of redemption equity.
Search titles and tax lien issues
In most jurisdictions it is common for the lender being foreclosed in order to obtain a search for the title of the real property and to notify all others who may have liens of property, whether based on judgment, contract, or by law or law so they may show up and express their interest in foreclosure litigation. This is done through archiving lis pendens as part of the lawsuit and recording it to provide public notice about the pendency of foreclosure measures. In all US jurisdictions, lenders who sell foreclosures on real property that have a federal tax lien must provide a 25-day sales notice to the Internal Revenue Service. Failure to provide notice results on the remaining lien attached to the actual property after the sale. Therefore, it is very important for the lender to seek local federal tax levies, so that if the parties involved in the foreclosure have a federal tax lien filed against them, proper notice to the IRS is given. Detailed explanations by the IRS from the federal lien tax process can be found.
Preparing foreclosure
Since the right of redemption is a fair right, foreclosure is an action in equity. To safeguard the right of redemption, the debtor may be able to petition to court for an order. If repossession is near, the debtor must seek a temporary restraining order. However, the debtor may have to post bonds in the amount of debt. It protects creditors if efforts to stop foreclosures are just an attempt to avoid debt.
A debtor can also challenge the validity of debt in a claim against the bank to stop the foreclosure and demand redress. In the process of foreclosure, lenders also bear the burden of proof that they have stood up to cover up.
Some US states, including California, Georgia, and Texas impose "soft" prerequisites on borrowers who seek to challenge the wrong foreclosures, rooted in the maxim of the principle of justice that "he who seeks equity must first do equity", as well as the rule of law it is common that parties seeking contract cancellation must first return all benefits received under the contract.
In other words, to challenge allegations of false foreclosures, the borrower must make legal auctions of all remaining outstanding debt before the sale of foreclosure. California has one of the strictest forms of this rule, that funds must be received by lenders prior to the sale. One bid attempt was held inadequately when a check arrived through FedEx on Monday, three days after foreclosure sales had occurred on Friday.
At least one textbook has attacked the paradox attached to the tender rules - that is, if the borrower actually has enough cash to immediately pay the entire balance, they would have paid it off and the lender will not try to confiscate them in the first place - but continues to be law in those countries.
Sometimes, borrowers have collected enough money at the last minute (usually through the sale of desperate fires from other unencumbered assets) to offer a good tender and thus retain their right to challenge the foreclosure process. The court has been unsympathetic to an attempt by the borrower to recover the sales loss from foreclosure.
One questionable court case is the legality of foreclosure practices that are sometimes cited as evidence of lending-related claims. In the case of First National Bank of Montgomery v. Jerome Daly, Jerome Daly claims that the bank does not offer any form of legal consideration because the money lent to him was made after the signing of the loan contract. Myths report that Daly wins, does not have to repay the loan, and the bank can not take back his property. In fact, the "decision" (widely referred to as the "Credit River Decision") is ruled out by the court.
In the recent case of New York, the Court rejected the lender's attempt to cover up the summary decision because the lender failed to submit the appropriate letter and papers to support foreclosure measures and also, the submitted papers and written statements were not prepared in the ordinary course of business.
Foreclosure auctions
When an entity (in the US, typically a county sheriff or designee) auction of foreclosed property notholder can set the starting price as the remaining balance on a mortgage loan. However, there are a number of issues that affect how property pricing is considered, including bankruptcy decisions. In a weak market, the confiscating party may set an initial price at a lower amount if it believes that real estate secures a loan worth less than the remaining principal. The timing of foreclosure notices to the sale of real property depends on many factors, such as foreclosure methods (judicial or non-judicial).
When the remaining mortgage balance is higher than the actual value of the house, the seizing party is unlikely to withdraw the auction bid at this price level. A house that has been through a foreclosure auction and failed to withdraw an acceptable offer may remain the property of the mortgage owner. The inventory is called REO (real estate owned). In this situation, the owner/service provider tries to sell it through a standard real estate channel.
Liability of more borrowers
Mortgagor may be required to pay Private Mortgage Insurance, or PMI, as long as the principal principle of the mortgage is above 80% of the value of the property. In most situations, the insurance requirement guarantees that the lender regains a predetermined proportion of the value of the loan, either from a foreclosure auction or from a PMI or a combination of them.
Nevertheless, in an illiquid real estate market or if real estate prices fall, the foreclosed property can be sold for less than the remaining balance of the principal mortgage loan, and there may be no insurance to cover the losses. In this case, the court overseeing the foreclosure process may include a deficiency assessment of the mortor. A deficiency assessment can be used to place a lien on another borrower's property that requires the mortgagor to pay the difference. This gives the lender the legal right to collect the remaining debts from other assets of the mortgage (if any).
There are exceptions to this rule. If a mortgage is a non-recourse debt (which often happens with housing mortgages occupied by owners in the US), the lender may not go after the borrower's assets to cover his losses. The ability of lenders to pursue a deficiency assessment may be limited by state law. In California and several other US states, the original mortgage (taken at the time of purchase) is usually a non-recourse loan; however, refinanced loans and home equity credit lines are not.
If the lender chooses not to pursue a deficiency rating - or can not because the mortgage is non-recourse - and receives a loss, the borrower may have to pay income tax on the amount that has not been paid if it can be considered "forgivable debt." However, recent changes in tax laws may change the way these numbers are reported.
Any lien resulting from other loans against foreclosed properties (second mortgage, HELOC) is "deleted" by foreclosures, but the borrower is still obligated to pay off the loan if they are not paid out of foreclosure auction results.
Alternative renegotiation
In the wake of the United States housing bubble and subsequent mortgage crisis there has been an increase in interest in the renegotiation or modification of mortgage loans rather than foreclosures, and some commentators speculate that the crisis is exacerbated by "the unwillingness of lenders to renegotiate mortgages". Some policies, including the Hope Now initiative sponsored by the US Treasury Department and the 2009 "Making Home Affordable" plan have offered incentives to renegotiate mortgages. Renegotiations may include downgrading of principal due or temporarily reducing the interest rate. A 2009 study by Federal Reserve economists found that even with the use of a broad definition of renegotiation, only 3% of "seriously borrowed borrowers" received modifications. A leading theory links the lack of renegotiation with securitization and a large number of complainants with security interests in the mortgage. There is some support behind this theory, but data analysis finds that the rate of renegotiation is similar among unsecured and guaranteed mortgages. The analysts argue that banks usually do not renegotiate because they expect to make more money with foreclosures, because renegotiations impose "self-healing" and "redefault" risks. Government-backed programs such as the Affordable Home Financing Program (HARP) can give homeowners the ability to refinance their mortgages if they can not get traditional financing because of the declining value of their homes.
A double tracking process seems to be being used by many lenders, however, where lenders will simultaneously talk to borrowers about "loan modifications", but also move forward with the sale of property foreclosure of the borrower. Borrowers are heard complaining that they are misled by these practices and are often "shocked" that their homes have been sold at a foreclosure auction, because they believe they are in a "loan modification process". California has enacted a law to eliminate the "double tracking" type - The Homeowner Bill of Rights - AB 278, SB 900, which entered into force on 1 January 2013.
Post-foreclosure household experiences
A 2011 research paper by the Federal Reserve Board, "US Post-Foreclosure Experience," used credit reports from more than 37 million people between 1999 and 2010 to measure post-foreclosure behavior, especially in terms of future lending and housing consumption. The study found that: 1) On average 23% of people who experienced foreclosures have moved within a year of the foreclosure process started. At the same time, the control group (not facing foreclosure) has only a 12% migration rate; 2) Only 30% of post-foreclosure borrowers move to an environment with an average income of at least 25% lower than their previous environment; 3) The majority of post-foreclosure migrants do not end up in a substantially less desirable environment or denser living conditions; 4) There was no significant difference in household size between post-foreclosure and control groups. However, only 17% of post-foreclosure individuals have the same number and composition of household members after foreclosure than before. For comparison, the control group retained the same household friend in 46% of cases; and, 5) Only about 20% of post-foreclosure individuals choose to live in households where one person maintains a mortgage. Overall, the authors conclude that "it is difficult to say whether this small effect is due to a shock that causes foreclosure not durable, because the credit limits imposed by confiscation of a person's credit report are not large, or because service housing is more inelastic than other forms of consumption. "
Affected demographics
Recent housing studies show that minority households suffer disproportionately foreclosures. Other overrepresented groups include African Americans, tenant households, households with children, and homeowners born abroad. For example, statistics show that African-American buyers are 3.3 times more likely than white buyers in foreclosures, while Latino and Asian buyers are 2.5 and 1.6 times more likely. As an example of other statistics, over 60 percent of foreclosures that occurred in New York City in 2007 involved rental properties. Twenty percent of national foreclosures come from rental properties. One reason is that the majority of these people borrow subprime loans at risk. There is a lack of research done in this area that causes problems for three reasons. One, unable to describe who is foreclosed makes it challenging to develop policies and programs that can prevent/mitigate this trend for the future. Second, the researchers can not say to what extent the recent foreclosures have reversed the progress in home ownership that some groups, historically lacking equal access, have made. Third, too much research focuses on community-level effects even though it is the most affected individual household. Many people cite their own medical condition or family members as the main reason for foreclosure. Many do not have health insurance and can not adequately provide for their medical needs. This again points to the fact that foreclosures affect already vulnerable populations. Credit scores are severely affected after foreclosure. The average number of points decreases when you are 30 days late on your mortgage payment is 40 - 110 points, 90 days late is 70 - 135 points, and the final seizure, short sale or the replacement certificate is 85 - 160 points.
Recent trends
In 2009, the United States Congress tried to save the economy with a $ 700 billion bailout for the financial industry; However, there is a growing consensus that the deep collapse of the housing market is at the heart of the country's acute economic downturn. Having spent billions of dollars saving financial institutions only to see even more economic spirals in crisis, both liberal and conservative economists and lawmakers are pushing to redirect economic stimulus bills to what they see as a core issue: the housing market. But under the consensus in helping the housing market, there is a big difference over who should benefit under a competing plan. Democrats want to direct money directly to the people who suffer most; and Republicans want to aim for money in almost all home buyers, with the theory that the tidal wave will eventually lift all ships.
In 2010, there was a 14% increase in the number of homes that received a default notification between July and September. In that year one out of every 45 homes received foreclosure filings and the problem widened with increasing unemployment rates across the country. Banks have become very aggressive without much patience for those left in their mortgage payments, and there are more families entering the foreclosure process faster than ever. In 2011, banks were on track to take over more than 800,000 homes. In 2010, the highest rate of foreclosure filings was in Las Vegas, Nevada; Fort Myers, Florida; Modesto, California; Scottsdale, Arizona; Miami, Florida; and Ontario, California. The geographical diversity of these cities is made by the fact that they are all relatively metropolitan areas. Major cities like Houston, Texas saw a 26% increase in 2010, 23% in Seattle, Washington and 21% in Atlanta, Georgia. These cities have the lowest unemployment rates. At the far end of the spectrum, the cities with the lowest foreclosure rates are Rome, NY; South Burlington, VT; Charleston, WV; Bryan, TX; and Tuscaloosa, AL. Not surprisingly, these areas have the highest unemployment rates worldwide, helping to show further correlation. Excerpts from RealtyTrac CEO James Saccacio summarizes the latest trends:
"The flooding closes somewhat ebb in 2010 in the most severe housing market in the country, yet the foreclosure rate remains five to 10 times higher than the historic norms in most of the battered markets, where the risk-line remains and potentially triggering more waves of foreclosure activities in 2011 and beyond. "
As per RealtyTrac foreclosure data report for January 2014, 1 in every 1,058 homes in the US accepting foreclosure foreclosures. This figure is in the higher foreclosure frequency spectrum. In August 2014, the foreclosure rate was 33.7%, up 1.7% from a year ago. The increase in foreclosure activity is the most significant in New York and New Jersey, two of the most populous areas in the United States. Following them is Florida.
The impact of foreclosure
The impact of foreclosures is more than just homeowners but also extends to the city and the environment as a whole. Cities with high foreclosure rates often experience more crime and theft with abandoned homes become damaged, garbage collection on lawns, and increased prostitution. Foreclosures also impact on the sale of neighboring housing on two levels - space and time. For any given period of time, foreclosures have a greater negative impact as they get closer to the property they are trying to sell. The suggested conventional view is that an increase in foreclosures will lead to a decline in the value of the sale of neighboring property, which in turn will lead to an extension of the housing crisis. Another significant impact of increased foreclosure rates is on the mobility of school children. In general, studies have shown that schools that are destructive to children, although this is highly dependent on the quality of the original school and the destination school. A study conducted in New York City revealed that students who switch to school most often go to school with low test scores, on average, and overall school performance. The effects of this movement on academic performance for individual students require further research. Foreclosures also have emotional and physical effects on people. In a special study of 250 recruited participants who were foreclosed, 36.7% met the screening criteria for severe depression.
Other countries
Australia and New Zealand
In Australia and New Zealand, foreclosures have been banned by law in New Zealand for more than a century. In contrast, the mortgagee realizes security through sales, the implementation of sales forces is also governed by the law.
In both countries this reform of legislation has changed the way in which real property transactions are conducted. What is termed a "mortgage" is a legal interest that is registered against the cost of a simple title of the property. Because in both countries, the Torrens land registration system is used, registered as the owner or as a mortgageer creates an irrevocable interest (unless the acquisition of the registration is done by land transfer fraud). Therefore, the mortgagee never holds a modest fee, and there is a legal process to start and do mortgage sales in the event that the credit default property. In New Zealand, as in the UK, say, the land rights database is now electronic so there is no "title document" paper.
ireland
In Ireland, foreclosure has been abolished by the Land and Conveyancing Reform Act 2009 but Chapter 4 of Section 9 of the National Asset Management Agency Act 2009 provides for vesting order equivalent to foreclosure but may only be used by NAME.
People's Republic of China
Confiscation in the People's Republic of China takes place as a form of debt enforcement process under rigorous legal investigation, which is only permitted by the law of guarantee and property law.
China amended the Constitution of the People's Republic of China (adopted April 12, 1988), to allow the transfer of land rights, from "land rights granted" to "allocated land rights", paving the way for the private sector. ownership of land, allowing to rent, lease, and mortgage the land. The 1990 regulation on Land Rights Issues is further discussed with this followed by the Urban Real Estate Law (adopted July 5, 1994), "The Security Act of the People's Republic of China" (adopted 30 June 1995), and subsequently the "Urban Mortgage Measures" (issued May 9, 1997) resulted in the privatization of land and the practice of mortgage lending.
Mortgages and foreclosures
Chinese law and mortgage practice has grown with protection to prevent seizure to the maximum extent possible. This includes mandatory secondary security, cancellation (Chinese Contract Law), and account maintenance at the lender's bank to cover all defaults without prior notice to the borrower. A mortgagee can sue on records without confiscating, obtaining a general assessment, and collecting that decision against other properties of mortar, without confiscating. When all other roads have failed, the lender can look for foreclosure assessment . Under the "Civil Procedure Code", foreclosures should be completed within six months but this depends on several things including if the mortgage goes to court for the execution of the verdict. Mortgages are officially taken over at auction by licensed auction specialists.
Philippines
There are two seizure modes in the Philippines. A lender may close both lawfully and out of the law, as regulated by Rule Number 68 of the Law and Revised Act of 1997. No. 3135, respectively. Judicial confiscation is done by filing a complaint at the Regional Trial Court where the property resides. The Judge made an assessment, instructing the mortgagor to pay off debt within 90-120 days. If the debt is not paid within that period, the sale of the seizure meets the verdict. In unlawful seizure, the injured party does not need to take action in court, but can only apply before the Court's Registrar to secure the presence of the sheriff who conducts public sale. This is done based on sales force. Note that these two modes are specifically applicable to real estate mortgages. The chattel mortgage foreclosure (property mortgage) is governed by Sec. 14 of Law No. 1506, which gives mortgagor the right to sell the goods in general sales. It has also been established that in terms of mortgages, the law does not prohibit the sale of foreclosures done privately if agreed by the parties.
Spanish
Unlike in the United States, where foreclosure means the end of the line, the trial of foreclosures in Spain is only the beginning of the homeowners problem. They have to work for the bank for years and will never have anything - even cars. The Spanish mortgage holders are responsible for the entire loan amount to the bank in addition to penalty interest charges, and court fees. Much of this can be attributed to Spain which has the highest unemployment rate in the "eurozone." Unlike in the US, bankruptcy is not an adequate solution because mortgage debt is specifically excluded. Unlike other European countries, you can not go to court for any kind of debt relief. There have been many opinions on these policies in the Spanish Parliament but the government is confident that keeping these policies will prevent Spanish banks from having experienced something similar to US chaos. With real estate properties being taken over in their book worth about EUR100 billion, Spanish banks are eager to get rid of foreclosures.
South Africa
For developing countries, there is a high foreclosure rate in South Africa due to the privatization of housing delivery. One of the largest foreclosure opponents is the Western Cape Anti-Eviction Campaign which sees confiscation as unconstitutional and a special burden on vulnerable poor populations.
Switzerland
In Switzerland, foreclosures occur as a form of debt enforcement served by overlord of debt (current Lord Overton Sheraton) process under Swiss insolvency laws.
United Kingdom
In the United Kingdom, foreclosures are small remedies used to support property in mortgages with mortgages that are not entitled to a surplus of sales. Because this drug can be hard, the courts almost never allow it. Instead, they usually give orders for ownership and orders for sale, which lighten some of the hardness of repossessing by allowing sales.
The British foreclosure system is a unique and true foreclosure very rare. More generally, the lender pursues a process called mortgage ownership (or alternatively, "repossession" in the case where the bank originally sold the property as well).
Both mortgage/ownership ownership and repossession are very similar, with the main difference being the care of any funds that exceed the amount borrowed. In the case of mortgage ownership or repossession, if the house is sold or auctioned at a price that exceeds the balance of the loan, the funds are returned to the consumer. In the case of foreclosure, the mortgage company retains all rights to proceeds from a sale or auction.
UK foreclosures and mortgage holdings/proprietorship systems benefit consumers over lenders, as the UK has several pre-action protocols in place. Mortgage companies are required to work with homeowners to reach a resolution and it is possible to delay court action (in the end, allowing many to avoid losing their homes) in situations where the borrower has been enrolled in an individual program or if the borrower's income is going to increase significantly with a new job or other actions that will enable them to pay off the arrears.
There are no proper parallels for short American sales, although the UK has a process known as Assisted Voluntary Sale. An Assisted Voluntary Sale does have some negative credit impact to the consumer, but the bad effect is less clear than it might have been if the case was prosecuted.
See also
- Deed instead of foreclosure
- Drive-by check
- Equity stripping
- Eviction
- The 2007-2010 financial crisis
- Patience
- Affordable Home Modification Program (HAMP)
- Affordable Financing Program (HARP)
- HUD Auction
- Loss mitigation
- Occupy a House
- Repossession
- Real estate trends
- Short sale (real estate)
- Default strategy
- Tax collection - Sale of Taxes, Tax Auctions, Tax Confiscation
- Empty property
- the foreclosure crisis of the United States 2010
References
Further reading
- Jones, Katie. Preserving Home Ownership: The Congestion Research Prevention Initiative
- Rhodes, Trevor. American Foreclosure: All You Need to Know about Preventing and Buying . 348 pages. McGraw-Hill, April, 2008. ISBNÃ, 0-07-159058-7
Source of the article : Wikipedia
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