Asian Journal- The Filipino-American Community Newspaper

The term "foreclosure" is such a dreaded word in the home owning world that many individuals simply write off the word as taboo.

However, homeowners simply cannot "forgive and forget" about foreclosure. Why? The homeowner must remain prepared in the tragic event that foreclosure becomes a serious reality. The homeowner must understand foreclosure, the process, and his or her legal rights.

Foreclosure involves a lawsuit in which the bank, the mortgage company or other lien holder seeks to take an owner’s property to settle a debt. In certain circumstances the bank or lender will take ownership of the property or have the property sold to pay off the debt. The loss of the property forces the family to become "homeless."

Just the thought of becoming "homeless" is the major reason why homeowners refuse to dig deep into foreclosure and understand the defense actions they can take.

Foreclosure is a legal process that takes place inside a courtroom. Foreclosure will occur in one of two ways. Either the homeowner will face a "Strict Foreclosure" or the homeowner will face a "Foreclosure by Sale."

The judge sets a series of "law days" for each individual listed as a defendant in the foreclosure. After the "law day" ends, the individual loses all rights to the property. The "law day" will range from three weeks to as long as nine months or longer. "Law days’ are entirely up to the discretion of the judge.

The individual may avoid foreclosure by paying off the debt before the "law day." The debt will include both the money owed to the bank and attorney fees and court costs. Individuals may pay off the debt in a number of ways including selling the property personally or borrowing the money from another lender.

If the individual does not redeem the mortgage by the predetermined "law day," the rest of the individuals assigned on the list of defendants will each receive their own "law day" and are also presented an opportunity to wipe away the debt.

The outcome is simple. Either one of the defendants pays off the debt and is assigned the legal title or the property is handed over to the bank or lender.