Home Loans Interest Rate and its Effect on Foreclosure Laws

In most states in America, foreclosure is a legal process that goes through a formal and legal procedure. Basically, there are 10 steps that occur in compliance with foreclosure laws. Bank first sends borrower a notification of intent to foreclose, then initiates the foreclosure process in the court. Law requires notices to be published in the papers and if no payment is still made by the borrower to the lender, the waiting period expires. The court will commence hearing on the claims of the lender, then allows the bank to foreclose. Legal notices of the foreclosure are printed in the papers and if still no payment is made, the property is auctioned to the highest bidder.

Consult with Mortgage Brokers

Because of the legality of the process of foreclosure, your name will be appearing on public documents so you can expect calls from mortgage brokers and other mortgage providers, offering their help at good home loans interest rate. Mortgage brokers may be able to assist you if there is sufficient equity in your home. They can give you good home loans interest rates and may arrange for refinancing of your house so that the foreclosure process is arrested. Be careful, though, of the interest rates these brokers charge and the closing costs. Remember, it is very possible that high interest rates are what could have led to you defaulting on your loan!

There are foreclosure laws, but in states like California there are no set laws on interest rates. The rates change daily, subject to market variables. Make sure that consult your broker regarding interest rates.

Seek Legal Assistance

The best option to take whenever you are at the receiving end of an impending foreclosure, is to seek legal assistance. It is very possible that at this point, you are on the verge of filing for bankruptcy. Whatever option you decide to take – going to a broker and getting a better home loans interest rate, or filing for bankruptcy, make sure that you have the guidance of a lawyer. Your interests have to be protected.

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