law that makes it illegal to have your property foreclosed

These red flags include:Ĭontact the city or town where the property is locatedĬheck with the city or town for unpaid property taxes that have not been filed with the county recorder’s office, and also for the property’s assessed value. There are certain red flags to watch out for when purchasing a foreclosed property, regardless of whether it is located in a mortgage state or a deed of trust state. While the judicial foreclosure process is available in deed of trust states, in many cases lenders use the nonjudicial foreclosure process, which is much quicker. What is a deed of trust state?Ī deed of trust state uses deeds of trust to secure a loan. In many cases, mortgage states require the judicial foreclosure - or foreclosure by judicial sale - process to foreclose loans. What is a mortgage state?Ī mortgage state uses mortgages to secure a loan. A way you can distinguish one state’s laws from another is to know whether yours is a mortgage state or a deed of trust state. There is no one-size-fits-all national set of rules.

Purchasing a foreclosed property can be a relatively inexpensive way to enter the world of home ownership for the first time or buy into a neighborhood you wouldn’t otherwise be able to afford. While it’s true that you could save up to 30 percent by purchasing a foreclosed property, there are risks involved, and a wise buyer is always an educated one.īe aware, first and foremost, that foreclosure laws vary from state to state.

Law that makes it illegal to have your property foreclosed