The Foreclosure Crisis

The law provides a chance to mortgage, lease or rent a property. In case of defaults in payments as per the contractual agreements, the constitution through the courts of law stipulates that the actions of foreclosure be taken. This law is uniform in several states in the United States. There are also provisions that protect the mortgaged property from unfair foreclosures. Foreclosure is a legal concept that has existed for many years. It involves the legally binding actions of the third party lien holder to take control of the default in the mortgaged property and sell them so that the funds can be used to service the mortgage .This legal concept has evolved over time as it used to involve automatic take over by the mortgagee but it now allows
States with high cases of this kind of foreclosure have seen increased criminal activity at these houses are being broken into and other malpractice such as prostitution (Immergluck 2009).The case of a foreclosed property will greatly affect the sale value of the neighboring properties. This in turn results to high and extreme case of housing problems. Switching schools due to misplaced families affect the performance of young ones as they find it hard to settle. A study of 250 selected participants brought out that people who experience foreclosures experience physical and emotional distress as (Pollack & Lynch
In these, two federal laws are seen to directly affect the foreclosure actions. Injunctions on any case of bankruptcy are an automatic foreclosure regardless of the type. In this case the mortgagor`s right to equity in the property that is being mortgaged determines whether the stay will be lifted or not. In case the bankruptcy has been petitioned under Chapters 11, the court on bankruptcy may nullify, change or direct such stay on cause .This directions include the unavailability of enough protection of an interest in the mortgage holder`s property, or in the case that the mortgagor lacks equity in the property and the same property is not a necessity for an efficient rearrangement.
The Soldiers and Sailors Relief Act of 1940 gives a special and unique protection to mortgagors in their line of duty in the forces for the mortgage loans that were executed before these individual went into the forces. The act provides a special protection on the service men as they can request for default judgement which leads to a foreclosure action. In respect to this provision, the mortgage holder with this case must file an affidavit with the courts of law with a clear statement that the mortgagor has failed to honor the foreclosure complain and they are not actively engaged in the