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A Mortgage Company Must Act In Compliance With State Law

When a borrower falls short of his responsibility to make payments to his mortgage holder the lender has the right to foreclosure. Every state has its own foreclosure laws that vary accordingly. Some states for instance, require that an intention to foreclose be filed with the courts while other states don’t. There are some basics that apply to all foreclosure actions.

In a judicial action the mortgage holder is obliged to send a notice of intent giving the borrower an opportunity to avoid further action by paying what is owed plus any interest accrued. If the borrower chooses to ignore the notice or cannot meet the demand for payment the lender will proceed to file. The borrower will then be served with a legal summons to appear in court and given the opportunity to contest the lawsuit. However the borrower responds to the summons, the lender has the responsibility of proving that he has valid reason to foreclose.

If the judge rules in favor of the lender the borrower will be notified that the property will be sold at auction. Again the borrower will have a chance to come up with back payments and stop the sale. If the auction is allowed to take place and no one buys the property, it will remain under the ownership of the mortgage holder. Most state laws allow the occupant to stay in the home until he is officially evicted.

A judicial foreclosure procedure can be drawn out over a period of time, but a nonjudicial foreclosure that does not require a preliminary notice of intent can happen over a much shorter time span. In some states the lender can announce the impending sale of the property through a newspaper notice or by posting a sign on the premises. The borrower can always appeal to the courts on his own and ask that the sale be forestalled pending a legal proceeding.

An experienced attorney familiar with Colorado laws pertaining to foreclosure is at hand to confer at the client’s convenience. Call the legal offices of Parker Lawyers @ 303-841-9525.

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    11020 S. Pikes Peak Drive
    Suite 220, Victorian Peaks
    Parker, Colorado 80138
    Phone: 303-841-9525