The New House Bill That Affects the Foreclosure Process

Foreclosures occur when the homeowner fails to make regular mortgage payment. The foreclosure process usually begins after the homeowner misses the fourth payment and a notice of default is then issued. In the past homeowners would stay for years in their homes as they await the court to process the paperwork for the foreclosure. The foreclosure process could take between six months and one year, but the court paperwork would take years and until it is complete the homeowner continues to stay in the home

However, this has changed a lot in the real estate circles, because now the House Bill 87 has been passed. The law has shifted the burden of proof in many mortgage foreclosure cases from the bank who is the plaintiff and the defendant who is the homeowner. The homeowners now have to present solid proof that the bank doesn’t have the legal mandate to foreclose at the commencement of the proceedings. This change will definitely prevent the homeowners’ ability to defend their foreclosure cases because the banks will now be in a position to seek what is known as an expedited foreclosure.

In the past foreclosure cases might not have required the services of a specialized real estate attorney, but with the new law homeowners countrywide will have to hire very highly skilled real estate defense attorneys immediately a complaint is filed. This will be advantageous to the homeowner because they will now be in a position to seek valuable information courtesy of the bank which later becomes an integral part of the defense of most foreclosure actions.

It is also in the best interests of homeowners to begin strategizing as soon as possible once they realize that they cannot complete the mortgage payment and that they will soon be issued with the notice of default. They should not wait for the issuance of this notice, but they should instead contact their defense attorneys and begin the strategizing process and sell fast when they need to.

The new bill no doubt accelerates the period to complete many foreclosures and many homeowners will therefore be forced to leave their homes before they are ready to. Many homeowners are therefore advised to be well defended in the event that a foreclosure case comes about. Educating themselves about the foreclosure process and the bill in general will enable them to be well informed and even choose the best lawyer to help them strategize especially if they need to sell their home.

Many homeowners are not happy with House Bill 87, but for many banks who are the common plaintiffs in such cases, the bill is such a relief. Investors and we buy houses as is companies, are happy as they see a potential increase in inventory.