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In Nigeria, notably Festac Town, foreclosure is the lawful process in which a lender acquires control of a property after the homeowner has failed to maintain up with their loan payments. This process grants the lender the right to try to recover the balance of the loan by forcing a sale of the asset used as the collateral for the loan. It's a naturally complex process that involves several stages and distinct legal requirements.
Undergoing foreclosure can be a distressing and intricate process for most homeowners. Legal assistance becomes necessary because there are times the lender does not follow the proper foreclosure procedures, or there are mistakes in the loan documents. A proficient lawyer can examine the case, discover any discrepancies, interruptions, or breeches, and might be able to slow or stop the foreclosure process. They will help you understand your rights, explain your options, and guide you through the procedure, ensuring your rights are protected.
In Nigeria, there are various laws that govern the foreclosure process, such as The Mortgage Institutions Act 1989, Banks and Other Financial Institutions Act 1991, and the Land Use Act 1978. Foreclosure should follow due process, involving a court order, legal notices, and the right to cure the default. Unexpectedly, you'll find that in Nigeria, unlike some countries, deficiency judgments after foreclosure are permitted. That implies that if the foreclosure sale doesn't cover the loan balance, the lender can sue the borrower for the remainder.
Yes. The Nigeria foreclosure laws grant borrowers a 'right to redeem'. If you pay off the full loan amount plus costs and interest, you can stop the foreclosure process.
In a case where the foreclosure sale does not provide enough funds to pay off the mortgage debt, the lender has the right to file a lawsuit to recover the balance. This lawsuit is often referred to as a deficiency lawsuit.
Typically, lenders wait until you are several months behind on payments before initiating foreclosure. However, it's crucial to understand your loan documents as they lay out the terms upon which your particular lender can commence a foreclosure action.
This largely depends on your loan agreement and Nigeria's right of redemption laws. You may be able to reclaim your property if you repay the entire debt, plus costs and interest, within a specific timeframe.
Foreclosure can have a significant negative impact on your credit score. It remains on your credit reports for seven years, making it hard to qualify for new credit, buy a new home or even get a job.
The Nigeria Bar Association (NBA) and Legal Aid Council of Nigeria offer legal help to those facing foreclosure. The Central Bank of Nigeria (CBN) website and the Federal Mortgage Bank of Nigeria (FMBN) can provide more information about mortgage lending and foreclosures.
If you believe you are at risk of foreclosure, it's wise to seek legal counsel promptly. The sooner you get legal advice, the more options you'll have. Contact local law firms specializing in foreclosure laws, or The Nigeria Bar Association to get connected to a lawyer.
