For most home buyers, at least a partial amount of the purchase price of a home must be be borrowed. Here, it is common for home buyers to borrow that money from a bank or a mortgage company. In other cases, a homeowner may borrow money against the equity in the property after a home has been purchased. Borrowing this way is is referred to as a “home equity loan.”
In each of these cases, the bank or mortgage company that loans money will typically have a lien against the home. A lien is a legal claim against another person’s property as security for a debt. A lien does not convey ownership of the property, but gives the lien-holder a right to have the debt satisfied out of the proceeds of the property if the debt is not otherwise paid.
When a home buyer fails to make the payments that are due on the loan (when a home buyer “defaults” on the loan) the lender can foreclose, which means that the lender can force a sale of the home to pay for the outstanding loan.
Regarding foreclosure, it is important to know that the law that deals with foreclosure changes often. These changes typically involve the obligations of borrowers and lenders in the foreclosure process. Here, it is important to talk to an expert in foreclosure law, if you believe your home may be subject to foreclosure.
As with many other legal issues, another important consideration on foreclosure is delay. Deadlines are critically important to any foreclosure process. If you believe your home may be subject to foreclosure, if you miss one or more payments on your home, it is important to talk to an experienced foreclosure lawyer as soon as possible to preserve your rights.
To find the right foreclosure legal resource, contact SmartLaw.
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