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Foreclosure is a legal process where a mortgage lender or other lien holder seeks recompense for an unpaid debt by selling the property held as security for that debt. In Istanbul, the foreclosure process is governed by the Turkish Law on Execution and Bankruptcy which ensures due process and fairness to all parties involved. It is of utmost importance to exhaust all feasible options before resorting to foreclosure as it often leads to social and financial burdens.
Understanding and navigating the foreclosure process can be complex and burdensome. It involves intricate legal procedures that need expert handling. A lawyer will be invaluable in helping understand your rights and the best strategy to handle your case. Some common situations where people may require legal help are:
- When you are unable to keep up with your mortgage payments.
- When your lender initiates a foreclosure on your property.
- If you suspect any discrepancies or misconduct by the lender during the foreclosure process.
In Istanbul, Turkey, once a foreclosure process is initiated, a notice of default is served to the borrower. The borrower is then given a grace period known as a 'redemption period' to repay their default. Specific debtor protection laws, such as the ability to apply for a restructuring of the debt, are also in place. If this period lapses without any resolution, the property is then sold through an auction to the highest bidder. Furthermore, the new Turkish Code of Obligations provides additional protections for borrowers, such as restrictions on unilateral contract amendments by the banks. However, the property cannot be auctioned below its appraisal value to ensure fair trade off.
If you can't make your mortgage payments, your lender may start the foreclosure process. Initially, they will serve you a notice of default and if you're unable to rectify it within a stipulated time, the property may be sold off to offset the debt.
Yes, you have the right to stop the foreclosure process. This is typically done by paying off the default amount or negotiating a new payment plan with your lender. A foreclosure lawyer will guide you through these processes.
Once the property has been sold at auction, the rights to the property transfer to the new owner and you are generally not able to get your property back.
As a borrower, you have the right to be served a notice of default, to be given a redemption period and to stop the foreclosure process at any point by paying off the default amount. Furthermore, your property cannot be sold under its appraisal value. You should consult a lawyer for a deeper understanding of your rights.
If your property is sold for more than what you owe, the proceeds above and beyond your debt (minus costs and fees of the sale) are usually returned to you.
It is advisable to consult governmental bodies like the National Debt Helpline or the Turkish Financial Stability Committee for guidance in financial matters. These organizations provide resources and assistance that can help you understand and navigate the foreclosure processes and other financial matters.
The first step is to seek a consultation with an experience foreclosure lawyer in Istanbul, Turkey. A lawyer can help you understand your rights, work out a repayment or negotiation strategy with your lender, and guide you through the complex legalities of foreclosure. Following this, it will be essential to maintain clear lines of communication with your lender and be proactive in managing your financial situation to prevent future defaults.
