Just What Is Baltimore Commercial Foreclosure Law

The cast of characters. Everyone knows what a bank is. Most of us understand what a lender is ? an institution from whom money is borrowed. Adding the word ?commercial? to describe a lender simply means that the financial entity deals with businesses as opposed to individuals. Black?s Law Dictionary defines ?commercial loans? as: ?loans made to businesses as distinguished from personal-consumer credit loans.? Although a lender could make both commercial and consumer loans, this blog is dedicated primarily to commercial matters.

The field of law. To me, commercial foreclosure law refers to the rules and procedures applicable when a business defaults on a loan secured by some kind of collateral. So, if you work for an institution that loaned money to a business, and if the borrower defaulted under the terms of the loan agreement, then commercial foreclosure law provides the judicial framework for the protection of your rights. Typically, those rights involve the ability to collect money owed by the borrower through the sale of the loan collateral.

Collateral. Black?s states that collateral is property pledged as security for the satisfaction of a debt. If a business defaults on a loan, the lender can initiate a foreclosure action to compel the sale of the loan collateral and therefore collect the amounts owed by the borrower through proceeds from the sale. There are all kinds of business-related collateral. Perhaps the most recognizable is real estate ? the land a business owns. Some of the most interesting cases, however, deal with personal property collateral, which can be any property imaginable that is owned by a business ? a fleet of cars, office furniture or intangibles such as accounts receivable.

Lien. A lien is a description of an encumbrance on property: ?a claim . . . on property for payment of some debt.? Black?s. In the context of my blog, a lien arises by written contract between a lender and a borrower ? either a real estate mortgage agreement or a personal property security agreement. The lien granted by a borrower to a lender gives a lender the right to foreclose upon the subject property (collateral) for payment of the debt in the event of a default.

Commercial foreclosure. Turning again to Black?s, a foreclosure is defined, in part, as the ?enforcement of a lien . . . or mortgage . . ..? Paraphrasing Black?s, foreclosure is the legal process by which real or personal property subject to a lien is sold in satisfaction of a debt. To foreclose means to terminate a borrower?s rights in the subject property. A foreclosure that is commercial merely refers to the termination of a business borrower?s rights in its property.

A form of collection. Commercial foreclosure law is a special kind of collection law. It?s a body of rules governing how banks and financial institutions recover money by asserting rights in, and selling, collateral that a business granted to secure the loan. It?s the set of legal principles applicable to a lender needing to collect money owed by a business, which failed to make its loan payments or otherwise defaulted under the terms of the loan documents. If any of these matters are relevant to what you do for a living, I welcome your visits to my blog and hope that you will e-mail me with your questions or comments.

John D. Waller is a partner at the Indianapolis law firm of Wooden & McLaughlin LLP (www.woodmclaw.com). He publishes the blog Indiana Commercial Foreclosure Law at commercialforeclosureblog.typepad.com. John?s phone number is 317-639-6151, and his e-mail address is jwaller@woodmclaw.com.

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To Win in Your First Baltimore Foreclosure Auction Bid

Auction is the phase of the foreclosure home procedure when the pre-foreclosure phrase of a foreclosure home has ended. Lenders will bring the title of the foreclosure home for auction and looking for new owner of the foreclosure home. The purpose of the lenders putting the foreclosure home on auction is to recapture the losses that the previous owner caused. There is only business in auction. People bid and the highest bid win the foreclosure home.

Baltimore Foreclosure 101

Foreclosure 101

Foreclosure is an official procedure in which a bank or a creditor takes possession on a real property for the reason that the owner was no longer capable to meet the terms Read on ?

To win in auction, you must have understood the process of foreclosure auction. In most of the cases, lenders are the first mortgage holder of a foreclosure home. Thus, the fund collected from auction has to first give to the lenders. Once the first mortgage holder has been satisfied, any extra funds will be used to settle any other remaining obligations. Then only the funds will be disbursed to the foreclosure homeowner if there are any remain.

1) Foreclosure Home Title Research
Who don’t want to make money if there are chances? To make money through buying foreclosure home in auctions, there are a few preparations you must do. If you are seeing a foreclosure home, you must first do a title research on it. The goal of doing the title research is to determine all the liens or judgments against the foreclosure home. These can include civil lawsuit judgments, unpaid personal property taxes and state and federal tax liens. This is because if you got the hammer knock on the foreclosure home, you will be granted the title to the foreclosure home subject to all liens and encumbrances. If you misjudge the hidden liens, there will be extra costs in your planning.

2) Getting Finance
Secondly, after doing the foreclosure home research and info collections, you need to be ready with financing. This is because in order to bid in auction, you need cash or cash equivalent to show you’re affordable to participate in auction. They will record your cash amount and that will be your limit to bid. If your bid exceeds the limit, your bid will be counted as invalid. Besides, when you present the winning bid, you will need to pay a 5-10% deposit on the spot as the conclusion of the auction while the balance of the purchase price due within a few days. You will need financing to back you up immediately.

3) Psychology Preparation
Thirdly, the psychology preparation you need is to get yourself used to the auction environment. It’s recommended that you attend the auction for a few times before making the first bid. This act will help you to get comfortable with the auction process and give you confident. Auction is very intense during the process. People will easily get controlled by the intense environment and get high in auction. This is always the cause of mistakes. For foreclosure home, if your bid exceeds the value of the house, you will earn nothing though you’ve won the auction. Thus, you have to set a bottom line in your bidding and stick to it. Most importantly, stay firm with your bottom line in auction and don’t easily get affected by the intense environment there.

Buying a foreclosure home in auction could really be a great bargain. Because a foreclosure home is being sold based on the balance of the loan but not on the market value. That means a foreclosure home is more profitable if the differences between the balance of the loan and market value is huge. Buying foreclosure home in auction can bring you fortune. If you are a home buyer, u save money; if you are an investor, you make money when reselling the foreclosure home with market value. Either way, to enjoy the profit from foreclosure home, you need to first start your research with free foreclosure listings now.

For being involved in both home loan and real estate career off line, Shawn Daren is experienced to share his knowledge with us. Visit his site to learn more on free foreclosure listings and how to buy foreclosure.