West Virginia

West Virginia does both judicial and non judicial foreclosures.  As in most states where both options are available, the decision about the process will be used will depend on the language in the mortgage or deed of trust.  If the “power of sale” clause is written into the mortgage or deed of trust, then judicial foreclosure can be avoided.   This is by far more preferable to the bank because it moves the prcess along much quicker.  Choosing to follow a non judicial process is also in the lenders best interest because it saves them money.  The less the bank has to spend on resolving this problem, the better for them.   Should such a clause not be written into the mortgage or deed of trust, then the foreclosure must go through the court system.  This is referred to as judicial foreclosure and it is more costly to the bank in attorneys fees.  Time is a cost to the lender as well and judicial foreclosure takes a lot more time.  

In power of sale foreclosures, or non judicial foreclosures, sometimes the language in the mortgage or deed of trust specifies the time, place and terms of the sale. When this is the case, then that is the procedure which will be followed.

Barring such specifications, most out of court foreclosure proceed with a notice of sale being posted on the property itself and also on the front door of the courthouse for the county where the property is located.  This posting of the notice must be presented to the owner/borrower and anyone holding a junior or subordinate lien on the property.  These could include 2nd mortgages, 3rd mortgages or 4th mortgages.  People with trust deeds attached to the property, mechanics liens etc…

In addition to the distribution of these notices of sale, the lender must advertise the sale of the property in a newspaper.  The newespaper chosen for this part of the processmust have circulation in the county where the property is located.  The ad must be run once a week for four weeks prior to the sale date.  The time line for the notification of the home owner in trouble and the junior lien holders is 20 days prior to the sale.

The auction will be held as described in the notice of sale.  It must be a public auction.  This means of course, that anyone can bid for the property.  Even the home owner or a friend or relative of the home owner etc.. can do this.  The home will be awarded to the highest bidder.  At the time the winning bid is achieved, the bidder must be prepared to pay one third of that winning bid in cash.  This is an unusual requirement, but not unheard of.  Some states require the entire purchase must be paid in cash, at the time the winning bid is announced.

In West Virginia, there is no right of redemption period.  This is a time allowed in some states where the former home owner can regain ownership of the property by paying what was the winning bid price, plus some interest.  But, in West Virginia, once the sale is over there is no turning back, the winning bidder does not need to worry that if they put more money into the place or move into it etc… that, the money and effort use for that purpose will be wasted.  Conversely it means the original home owner had better do all they can to beat the clock so to speak, because once it is sold at auction, they are out of luck.

Also in West Virginia deficiency judgments are not allowed.  This is good news for the home owner or borrower.  It means that if the property is sold at auction for less than is owed on the home, then the lender or lenders cannot pursue the borrower for the funds that were not generated by the sale. In states where deficiency judgements are allowed this can be a big stress and worry for the person loosing their home to a foreclosure auction.  Just imagine how bad it would be to loose your home to the trustee's sale and still ave the bank sue you for more money.  Thanks West Virginia for standing up for the little guy here.

Integrity 1st Consulting is your Foreclosure  ebook specialist- Kathy Swift

About the Author:

Integrity 1st Consulting is your Foreclosure specialist- Kathy Swift

Article Source: ArticlesBase.com - Foreclosure Process in West Virginia

Judicial vs Non-judicial foreclosure in California?

I've read that a bank cannot garnish wages if the foreclosure was non-judicial. How do I determine what type of foreclosure has occured on a specific house.
Thanks for your response Sam. I don't currently own this house but without revealing too much detail, I was assisting in the payment of the mortgage. Now this guy is asking me to help with the garnishments. I won't get a straight answer from him. So I was hoping I could search through public records and find out.

if loan was last 5 years then probably non judicial. this should help

http://www.all-foreclosure.com/judicial.htm

Home foreclosure is a traumatic event and unfortunately today many homeowners are faced with the prospect of losing their family home. Nobody wants to be in a situation where foreclosure is inevitable; however there are strategies that you can employ to help save your home.

Strategy 1: Confront the Problem

If you can't afford your monthly mortgage payment, face up to it and recognize the problem and take the appropriate steps to deal with it. Avoiding the problem will compound the problem. Often people in a crisis wait too long before taking action – As soon as you are aware of the problem deal with it immediately. Read the rest of this entry »

If you are a homeowner who is on the brink of foreclosure or if your lender has already started the proceedings, you may not know where to turn.If you are limited on financial resources you may be unable to hire a lawyer to provide you with expert advice.Although nothing is better than professional help, you can turn to the internet.

When using the internet to find advice about foreclosure or to learn what your rights as a homeowner are, visit the website of your state.This should be the official website.Perform a search on the site for information on foreclosures.

You should be provided with information on foreclosure laws in your state of residence, as well as detailed information on the process works. This information may also be available from other sources online, but you know the information is accurate and up-to-date when you get it directly from the source.

Another type of website that you may want to checkout is that of foreclosure attorneys or those who specialize in real estate. Many lawyers will share important foreclosure information and tips on their websites, available to you free of charge.

For example, a current search of foreclosure attorneys will tell you that in some states foreclosure can be stopped right in its tracks when bankruptcy is declared. Although not all attorneys are willing to divulge all of their secrets, you may be surprised how much information you can find online.

The internet can also be used to help you find and hire a lawyer. As previously stated, those facing foreclosure don't always have the financial resources needed to hire a lawyer, but there are ways around this. Some lawyers will accept cases pro bono and others will work out a payment agreement with you.

As for when you should hire an attorney, you should do so if you fall victim to a foreclosure scam or if you believe that your lender is treating you unfairly and illegally. As a reminder, lawyers specializing in real estate and foreclosures are recommended.

Credit counseling websites are another resource that you can find available online. This is a controversial and sometimes risky approach, but help may be out there for you. Some credit counseling companies may try to work with your lender for you.

This may result in more affordable monthly mortgage payments for you. With that in mind, there are many scams that surround these companies, even those that claim to be non-profit organizations. For that reason, do the proper amount of research online first or check with the Better Business Bureau (BBB).

The website for the United States Department of Housing and Urban Development (HUD) should be visited as well. There you will find a lot of information that is not only from a reliable source, but accurate. This website can be found at HUD.gov.

There, you can not only review your options before, during, and after foreclosure, but you can be connected to valuable resources, including a HUD approved housing counselor.

Also online, you will find a number of websites that are operated by individuals just like yourself. Many have dealt with foreclosures firsthand, some came out on top, while others didn't.

These types of websites can be used to provide you with valuable resources, as well as support. Hearing how to deal with foreclosure firsthand, through someone who has been there before, may be a source of comfort for you.

About the Author:

1000s of Real Estate,Housing,Construction and Foreclosures.Click Here -
WorldRealEstatePages.com,
WorldHousingPages.com,
WorldConstructionPages.comand
WorldForeclosurePages.com

Article Source: ArticlesBase.com - Foreclosure - Where To Find Advise