Owning a house and working a rewarding job while raising a family have long been considered to be a significant part of the great American dream. However, owning a home isn't always positive. Rewards aside, there are events that may happen in people's lives that find them working to pay their bills with less income. An economic downturn, like the recession of 2007 and a job layoff are types of events that can cause people to struggle to pay their mortgage. Following the sub-prime mortgage crash of 2007, the government stepped in and passed new foreclosure regulations, hoping to keep Americans from being forced to leave their residences.
The Housing and Economic Recovery Act of 2008 was approved by the federal government following the start of the 2007 recession. Families across the United States welcomed the change. In fact, approximately 400,000 Americans could have been kept in their homes after the passing of the law according to the United States Department of Housing and Urban Development (HUD). American families had from October 2008 to September 2011 to take advantage of the new law. Intent of the law was, in part, to prevent banks and other financial institutions from taking advantage of borrowers by giving them deceptive information about loans.
Many foreclosure laws are implemented at the state level. In fact, some state legislatures are reviewing some of their current foreclosure laws in effort to help keep homeowners in their houses. There are ways homeowners may avoid losing their homes. For example, homeowners can contact their lender. Some lenders will work with homeowners to help set up revised mortgage repayment plans. Some lenders will work with homeowners to help set up revised mortgage repayment plans. For instance, lenders might work with homeowners to lower their monthly rates and extend the amount of time homeowners have to pay off their entire mortgage. This option is generally more rewarding than trying to avoid discussing challenges that may be preventing homeowners from making mortgage payments on time.
Even with these support systems and revised foreclosure laws in place, there are instances when lenders move forward with having homeowners removed from their houses. Two main types of proceedings allowed in foreclosure laws are judicial and non-judicial proceedings. Judicial foreclosure proceedings occur when a financial institution is required, by law, to start the actions of removing people from their homes in court. The good news is that homeowners might be able to stop the proceedings if they contact the financial institution and pay their mortgage up to date. If homeowners don't get their mortgage current, their financial institution can continue to take action to have them removed from their home.
Non-judicial foreclosure laws allow financial institutions to begin the actions of removing homeowners from their property if homeowners are behind in their mortgage by so many days. Financial institutions don't have to go to court to start the process of removing people from their houses in these cases. In some states, foreclosure proceedings might start after people get 45 or more days behind in paying their mortgage. These financial institutions must give homeowners a written notice before they start the proceedings. As with judicial foreclosure laws, financial institutions might work with people who have taken out mortgages with them, allowing the people to stay in their houses if they get their mortgages caught up. The Real Estate Settlement Procedures Act, HUD and the Truth in Lending Act are some of the policies and organizations homeowners struggling to pay their mortgage can contact for help.
The Housing and Economic Recovery Act of 2008 was approved by the federal government following the start of the 2007 recession. Families across the United States welcomed the change. In fact, approximately 400,000 Americans could have been kept in their homes after the passing of the law according to the United States Department of Housing and Urban Development (HUD). American families had from October 2008 to September 2011 to take advantage of the new law. Intent of the law was, in part, to prevent banks and other financial institutions from taking advantage of borrowers by giving them deceptive information about loans.
Many foreclosure laws are implemented at the state level. In fact, some state legislatures are reviewing some of their current foreclosure laws in effort to help keep homeowners in their houses. There are ways homeowners may avoid losing their homes. For example, homeowners can contact their lender. Some lenders will work with homeowners to help set up revised mortgage repayment plans. Some lenders will work with homeowners to help set up revised mortgage repayment plans. For instance, lenders might work with homeowners to lower their monthly rates and extend the amount of time homeowners have to pay off their entire mortgage. This option is generally more rewarding than trying to avoid discussing challenges that may be preventing homeowners from making mortgage payments on time.
Even with these support systems and revised foreclosure laws in place, there are instances when lenders move forward with having homeowners removed from their houses. Two main types of proceedings allowed in foreclosure laws are judicial and non-judicial proceedings. Judicial foreclosure proceedings occur when a financial institution is required, by law, to start the actions of removing people from their homes in court. The good news is that homeowners might be able to stop the proceedings if they contact the financial institution and pay their mortgage up to date. If homeowners don't get their mortgage current, their financial institution can continue to take action to have them removed from their home.
Non-judicial foreclosure laws allow financial institutions to begin the actions of removing homeowners from their property if homeowners are behind in their mortgage by so many days. Financial institutions don't have to go to court to start the process of removing people from their houses in these cases. In some states, foreclosure proceedings might start after people get 45 or more days behind in paying their mortgage. These financial institutions must give homeowners a written notice before they start the proceedings. As with judicial foreclosure laws, financial institutions might work with people who have taken out mortgages with them, allowing the people to stay in their houses if they get their mortgages caught up. The Real Estate Settlement Procedures Act, HUD and the Truth in Lending Act are some of the policies and organizations homeowners struggling to pay their mortgage can contact for help.
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