Foreclosures are the forced sales of real property by lenders, and they typically occur when property owners fail to repay a loan obtained from a bank. If a property owner does not repay a mortgage, the lender has the legal right to take the property back, selling it to pay what’s owed on the loan. In the article below you will find an in-depth explanation of foreclosure in Fairfield, OH.
Explaining Foreclosure
Foreclosure is the lawsuit brought by a lender to force the selling of property to repay a debt. Courts typically freeze the balance owed on the mortgage including the interest, and order that the property be sold and the proceeds applied to the debt. However, the property owner has the right to pay the lender the amount owed and retain the property. Known as statutory rights of redemption, the debtor only has a certain time to pay the remaining debt.
Acceleration Clauses in Promissory Notes
Acceleration clauses are important parts of mortgages, and they can cause foreclosures to happen prematurely. These clauses allow banks to declare the full loan balance due if an owner misses a set number of payments. If the mortgage contains such a clause, the bank can sue for the payments and the entire loan amount. Generally, property owners must be given sufficient notice before a lender can use the acceleration clause.
Foreclosure and the Fair Debt-Collection Practices Act
Many courts believe that attorneys and collection agents are subject to the provisions of the FDCPA. For instance, if an attorney filing a foreclosure in Fairfield, OH demands a certain amount of money to reinstate the mortgage, this is regarded as debt collection and the lawyer must abide by the FDCPA.
Should a Person Call an Attorney If They Are Facing Foreclosure?
If a person feels that they may go into default on a mortgage and they’re in danger of losing their home, a local foreclosure lawyer can help them determine if other legal options are available. Certain options, including a bankruptcy filing, may help a debtor find a solution. Visit Domain to find out lawyers can represent clients in foreclosure proceedings and how they can ensure that the client’s interests and rights are protected.
