With the collapse of the real estate market, the word “foreclosure” has unfortunately become an often used word in the English language. This article will provide information about the types of foreclosures found in various states and how they work.

In the context of real estate law, foreclosure is the legal process by which a real property lender recovers possession of the real property that secures its loan. Much like the repossession of a car or furniture when the borrower does not pay, foreclosure allows the real property lender to take back the property.

The real property lender can do this because as part of its agreement to loan money to the borrower, the lender is granted a voluntary lien by the borrower which the lender can enforce should the borrower refuse or be unable to pay.

The most common form of foreclosure in the United States is known as a “non – judicial” foreclosure under the provisions of the power of sale clause contained in a mortgage or deed of trust. This method has become the most frequent type of foreclosure proceeding because unlike a “judicial” foreclosure no court action or judicial proceeding is required.

In California, for example, virtually every foreclosure is a “non – judicial” foreclosure because it takes very little time and money to take back the property from the borrower.

The “non – judicial” foreclosure process involves the sale of the property by the mortgage holder without court supervision. This process is generally much faster and cheaper than foreclosure by a court ordered judicial sale and unless stopped voluntarily by agreement between the borrower and lender, by bankruptcy stay or court a ordered stay, can take less than six months.

The “non – judicial” foreclosure has a variety of steps that culminate in a trustee’s sale. At the trustee’s sale the property will be auctioned to the highest bidder. Should bids not be forthcoming the property will revert back to the lender whose loan is in default. If there are bidders, the foreclosing lender can keep the proceeds to pay off its mortgage and any legal costs. Any amounts in excess of the lender’s loan will be used to pay off junior or subordinate liens. Should there be a balance after the payment of all liens it will be paid over to the borrower.

Foreclosure by court action, more commonly known as a “judicial foreclosure,” is available in every state and required by some. This involves a lawsuit in which the lender asks for a sale of the real property under the supervision of a court. As with other court proceedings, the constitutional dictates of “due process” permit the borrower to answer the foreclosure lawsuit and raise a variety of legal defenses. At the conclusion of the foreclosure lawsuit a decision is made by the court in favor of either the lender or borrower. Should the lender prevail, the property is sold and like with the more common “non- judicial” foreclosure the proceeds go first to satisfy the foreclosing lender; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left.

There are many aspects of employment law that the average non-unionized worker in Canada does not fully understand. This article will examine four features of Canadian employment law where employees often have a misconception regarding their rights. This article should not however be considered legal advice and if information is needed regarding a specific situation a lawyer should always be consulted.

1) In almost all sectors of the economy, an employer is allowed to terminate a worker’s employment (fire them) at any time. In most cases there is an obligation on the employer to provide reasonable notice of the termination and to comply with Employment Standards and Human Rights legislation. However, if these requirements are met, there is nothing stopping employers from dismissing an employee, even if the employee is one of their best and was just promoted the day before!

2) When an employee is let go, they may only be entitled to Employment Standards damages, not to reasonable notice damages. Many employees assume they are entitled to reasonable notice damages once they are let go. However, employees also have an obligation to mitigate their damages – find a new job to replace their old one. If an employee does not properly attempt to mitigate their damages, or finds a new job right away, then they are not entitled to reasonable notice damages.

3) An employer is under no obligation to provide a reference letter to employees whether they have been let go for just cause or when they are wrongfully dismissed. While it is true that many employers will provide a reference letter because it can reduce their obligations to the dismissed employee, the employer is under no obligation to provide one. In fact, reference letters are one thing that employees may not be able to obtain even after winning a case against their employer in court.

4) Finally it should be noted that employers do not need to give detailed reasons for firing an employee. So long as it is done in a respectful manner, a simple “You’re not the right fit with the company” is sufficient. The employer has an obligation to be clear that the employee has been let go but they do not have to go on at length giving an explanation.

The above four points cover areas where employees may think they are entitled to more than they are. To determine what rights you as an employee do have in a particular situation an employment lawyer should be consulted.

Although enlisting the services of a real estate lawyer means spending more money, there are many benefits that a home buyer or seller stands to benefit from in the process. A qualified and competent attorney can help safeguard an individuals interests and ensure that the process is in strict adherence to the laws of the land. Listed here are some of the ways in which an attorney can help one close a deal successfully, without incurring major overheads that might be worth a lot of money.

One area in which they offer a helping hand is in negotiations, where all the transactions are put into writing in form of a contract, to ensure that everything is legally binding. The attorney achieves this in not only negotiating the deal but also in ensuring that the contract is in tandem with state laws. The attorney also addresses any issues that might affect the use of the property in future.

The attorneys also come in handy to help home buyers in the title search so as to ensure that the property is free from any hindrances that may make the process ineffective. The title search is an important aspect of home buying because it determines whether the seller is legally selling the property and also to clear any pending questions. The attorney provides these services much faster and at less costs because these attorneys have close working relationships with title companies.

The attorney ensures that the property transfers are carried out in a legal manner and that the process is as smooth as possible since at times complexities might arise in the course of the negotiations. An attorney has the knowledge of various kinds of business arrangement, s as well as the legal boundaries of the specific locality. The attorney therefore, ensures that the contract is in line with the law and that the terms of the deal do not violate charter agreements.

The deeds for the property are supposed to be filed either at the county of state level. Having a good attorney ensures that this is speeded up and also done in an efficient manner. If the transaction happens to have some restrictions on the property, the legal expert will be able to navigate through the stipulated regulations and be able to complete the process quite fast.

For cases that revolve around commercial property, having these services becomes much more important since there some bottlenecks that one cannot breakthrough as an individual. There are cases that might cause the business to be closed down, such as when there is lack of tax payer identification number.

An attorney is very instrumental in representing the interests of the clients to their satisfaction. Failure to enlist the services of one might expose the home seller or buyer to legal tussles as a result of failing to disclose to the other party some vital information concerning the property.

The reason for this is because the real estate lawyer helps in inspecting the home and ensuring that all the facts concerning the property are well represented. It is also important to note that without an attorney, one might not be able to file the necessary documents with the relevant authorities. This might bring some ramifications in future.

Mortgage is a loan secured by a property. Here, a mortgage lender advances money to the borrower. In turn, the borrower must provide a real property as a security to the lender. Foreclosure is a right available to the lender to recover his outstanding money. If the borrower fails to repay the money borrowed within the due date, then the foreclosure right can be enforced.

The lender has a right to obtain a legal order from the court that the borrower should be totally prohibited of his right to redeem the property or a legal order that the property should be sold.

The foreclosure right can be enforced:

If the money has become due for payment.
If there are no contrary conditions in the mortgage deed.
There are different kinds of mortgage. Some of them are as follows:

Simple Mortgage – The foreclosure right is not available for a simple mortgage. In this case, the remedy is to either proceed against the borrower personally or for the sale of the property.
Usufructuary Mortgage – The foreclosure right is not available for a usufructuary mortgage also. In this case, the lender will have the possession of the property until the loan amount is totally repaid.
Anomalous Mortgage – In case of an anomalous mortgage, the remedy depends upon the terms of the loan.
English Mortgage – The lender can bring a suit for sale of the property, in case of English mortgage.
Mortgage by Conditional Sale – If it is a mortgage by conditional sale, the loan matures into sale if the borrower fails to pay the debts.
Mortgage by Deposit of Title Deeds – In case of mortgage by deposit of titles deeds, the remedy is to go for personal legal order or for sale of the property.
The lender may foreclose depriving the right of redemption. The right to institute a suit for foreclosure or sale is not available to a Lender for any work of maintenance in which the public is interested.

A Lender can hold two or more mortgages executed by the same borrower. In respect of each of such mortgages, he can have the right to obtain a legal order of foreclosure. In case he sues to obtain such a legal order on any one of the loans, he will be bound to sue on all the loans in respect of which the loan money has become due.

Are you amongst the thousands of homeowners that owes substantially more on your home then what the property is presently worth?

If so, it’s crucial that you understand all of the options that are available to you. While everyone’s circumstance is unique, many homeowners have turned to the short sale process to remove themselves from this onerous burden. While in many cases it is often a good alternative, it’s critically important that you have a full understanding of all of the legal repercussions.

So let’s begin with an explanation.

When an existing lender agrees to allow the sale of a property for less than what is owed, it is called a short sale. The lender essentially ends up financially “short” of the full value of monies owed to them. While in a short sale transaction your lender may agree to release the lien on your property, it does not necessarily mean that they are cancelling the promissory note that you executed when you originally purchased the property. So, in a transaction you could potentially continue to be financially liable to the lender if very specific release language is not included in the final approval letter from your lender.

How does a short sale work?

The process itself is fairly straight forward. However, there are often many twists and turns through a reasonably extended period of time to get to the finish line! Here’s the typical flow of events in a short sale transaction:

We recommend that the process begin with you speaking to an attorney and a tax professional to discuss options, possible outcomes and legal ramifications.
You then list your property at a fair market value with a Real Estate Agent.
Your agent markets the property and obtains a purchase offer.
The purchase offer, along with all of the required supporting financial documentation is submitted to the lender or lenders for approval.
Once you and the lender agree upon the terms, the transaction moves on to final closing just as in a regular real estate resale transaction.