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Foreclosure law in Sri Lanka, including Dehiwala-Mount Lavinia, involves a legal process set in motion by a lender to reclaim a property due to the homeowner's failure to pay their mortgage loans. The laws governing foreclosure in Sri Lanka are based on the Mortgage Act No. 6 of 1949 and its amendments. Foreclosure is a complex process and it's essential to understand the ramifications and potential legal defenses.
Having a lawyer to guide you through the foreclosure process in Dehiwala-Mount Lavinia, Sri Lanka, is crucial for several reasons. Foreclosure laws can be complicated, and a lawyer can help to ensure that all procedures are rightly followed. A lawyer can also advise on possible options to avoid foreclosure or even negotiate with the lender on your behalf. This could involve restructuring the loan repayment plan, applying for loan modification or declaring bankruptcy.
The local foreclosure process in Dehiwala-Mount Lavinia, Sri Lanka, typically begins after the borrower has missed multiple mortgage payments. The lender will send a default notice and if the default isn't cured, the foreclosure process begins. This process involves several stages: Pre-foreclosure, Auction, and Post-foreclosure. The borrower is allotted a grace period usually referred to as "pre-foreclosure," during which they can negotiate with lenders or pay the outstanding amount. If the borrower is unable to do so, the property may be sold at a public auction. If the property doesn't sell at auction, it becomes the possession of the lending institution.
Yes, there are legal ways to avoid foreclosure, such as loan modification or refinancing, but these require the lender's approval. A lawyer can best guide you through these options.
Reclaiming a property after foreclosure might be possible if your mortgage agreement features a "right of redemption," but this is subject to specific terms and conditions. Consult a legal professional to understand all your options.
Foreclosure has a significant impact on your credit score. The exact darkness of the impact may depend on various factors, including your credit score before the foreclosure and how late you were on your payments.
The choice between bankruptcy and foreclosure depends on your financial situation and long-term objectives. Both have significant impacts on your credit score and should be discussed with a legal professional.
A notice of default is a document sent by a lender to a borrower, stating that they have fallen behind on their payments and must make the necessary payments during the given period to avoid foreclosure.
The following resources provide further information related to foreclosure in Sri Lanka:
If you're facing foreclosure in Dehiwala-Mount Lavinia, Sri Lanka, the first step should be to consult with a local lawyer specializing in foreclosure law. They can assist in understanding the process, your rights, and available options. If you're unable to afford a private lawyer, consider contacting the Legal Aid Commission of Sri Lanka.
