Can the bank put my loan in foreclosure if the court has not yet grantedit a judgment for default?

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Can the bank put my loan in foreclosure if the court has not yet grantedit a judgment for default?

I requested hearing and it still is pending. I have been in constant contact with my bank and making payments, plus catching up past due payments. When I call in for info and to pay monies they have been telling me for the last 6 months that my home is not in foreclosure. The last payment I made they told me my loan was past due $4222; this represents $3083 mortgage payments and $1139 in late fees/lawyer fees. I called them 4 days later to pay the $4222. They put me in foreclosure that day and refused my payment Now the say they will send me a re-instatment amount with added fees to get me out of foreclosure.  

Asked on July 7, 2011 under Real Estate Law, New Mexico

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In most States in this country, there are two ways a lending institution holding a mortgage that secures a loan for real property can foreclose if payments are not being made under the terms of the loan.

The first is a non-judicial foreclosure where by a State's statute, a lender whose loan is secured by a mortgage on real property can start and conclude a foreclosure without the nedd to fille a lawsuit and have court intervention. The laws of each State vary on how a non-judicial foreclosure occurs assuming a given State has this procedure.

The other way a foreclosure can occur in many States is by way of a judicial foreclosure where a lawsuit is filed in a county court of a given State against the property owner and the property owner is served with the summons and complaint, typically personally.

You should confirm in writing what you owe the lending institution and try to get current on the property's loan as well as confirm that once the payment is made, any notice of default as to your proeprty is removed by the lender.


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