Practice Areas

Blog

News

Library

Testimonials

• "I sent this letter certified after receiving the free guide [from] Phillips & Garcia P.C. Saved Foreclosure. Thanks a million!" A.D. from Colorado
• After seeing first hand what you are up against concerning the big banking companies, we are even more amazed that you are willing to fight the fight. The little guy needs your help and your fearless attitude. You are good people and true Americans. We are honored to be called your friends. R.R. - Mich., Lockout & Trashout Victim
• The attorneys were very professional and I felt as though they always had my best interest in mind. Without them I would have been pushed around and just another number to the bank. N.L., Wrongful Lockout Victim
• Thank you Mr. Phillips. If we hadn't found you the [Bank] would have foreclosed on our property and I can't imagine the misery that they would have caused. S.N. - Arizona

View All

How You May Lose Your Home Through Foreclosure Without Ever Going to Court; the Danger of Non-Judicial Foreclosure

While the Federal Government has made some, however few, attempts to keep homeowners afloat during the current foreclosure crisis, some of the problems stem from the very core of our legal system. Real estate ownership, as well as foreclosure, are governed by state law, and each state is entirely within its right to provide as much or as little protection to you, the homeowner, so long as it meets the bare minimum Constitutional requirements. With bank home seizures at a recent high, homeowners should know what they may be facing in the event of a foreclosure.

The biggest distinction is between the states that allow "judicial foreclosure" and those that allow "non-judicial foreclosure."

Judicial foreclosure begins just like any other legal action - through the court system, with the filing of a complaint and notice of pending action. The lender must indicate the amount of the debt and provide some reason for the court to allow it to foreclose. If the court rules in favor of the bank and that the debt is valid, it will enter a judgment for the total amount owed, plus costs and expenses for the foreclosure process itself.

Once judgment is entered, the court authorizes a sale of the property by the sheriff at an auction. Some, but not all states give the homeowner the opportunity to "redeem" the debt, or pay off the entire amount due, and keep their home. There is nothing, however, preventing the homeowner from bidding and buying his own home at the auction.

Currently 16 states require a judicial foreclosure before a bank can foreclose on a home. Florida, Connecticut, Illinois, New Jersey, Ohio and Pennsylvania are among them.

The non-judicial foreclosure process is much easier and much more favorable for the lending institution. Most states allow the foreclosure to be completed by a mere Notice or Letter of Default to the homeowner after the homeowner defaults. Most often, this Notice of Default will be recorded with the Registry of Deeds or its local equivalent. If the homeowner does not satisfy the debt within a certain period of time, depending on the state, a Notice of Sale will be sent to the homeowner, posted for the public, usually in newspapers, and the property will then be sold by public auction.

All too often in our practice, we hear from homeowners who lose their home to foreclosure without any right to be heard in a court of law - even when a bank stampedes over their property rights; as is the case when there's a wrongful lockout.

Our legal system was designed around every citizen's right to own property. States that permit non-judicial foreclosure seem to make it easier for banks and lenders to take away homeowners' most valuable property without even a hearing before a judge.

Fortunately, some states are beginning to take action to slow down the foreclosure process and require some form of mediation or borrower assistance program before people lose their home. Lita Epstein of AOL's Housing Watch has written an excellent article on this very topic.

Victims of wrongful foreclosure lockouts and seizures have rights. Phillips & Garcia, P.C., a leading law firm in wrongful foreclosure and seizure cases, is now speaking with homeowners in any state where there has been a wrongful foreclosure, lockout or trash-out of a borrower's home. Although we are licensed in Massachusetts, we can associate with qualified attorneys in your state. Contact us for a free consultation about your wrongful foreclosure lockout or trashout.

Co-authors: Andrew J. Garcia and Elina Litvak

Videos

Contact Information

Free Book

FAQs