Vivian van Breemen

187 ad le. b( 2t 0f i1n4a )n fciinndg .t hTahtesyt raor ng ug ee rt chraet df ii tromr sp ar or et edc et imo no trievda ut ecde st ot hi es saume o( ul onnt go- ft ec romr p) odrea bt et icno ncsoiudne rt rtihees rwi sikt ho fs ltoros innggecr ocnrterdoiltdour rpi nrog tcercitsieosn. a s s t a ke h o l d e r s a p p e a r n o t to Me nof os tr c oe fm tehnet ol fi tceor na tt ur ar cet, s ,siut gi sg eesatssi e trhfaotr cdoume ptaon i ge rsetaot ea rc c epsr so tceacpt ii toanl i na nc do mbme tot enr- law countries. These countries are therefore found to have stronger financial sc yi vsitl e- lma ws ( Lc oa uPnot rr ti ea se t( caol .u, n1 t9r9i e8s) ww ii tt hh hwi gehaekre rg r corwe dt hi t o( Hr orui gs thot ns ) e. tAadl .d, i2t i0o1n0a)l l yt h, ai nn countries with stronger creditor rights, risk-taking of banks (Houston et al., 22 00 10 07 ;; LJ aay aP roarmt aaent aanl . d, 1T9h9a7k)o, ra, n2d0 1d 3i v)i, ddeenbdt pi sasyu- ao nu ct se (oBf yf ri rnme sa n( ed. gO. , ’ CDoj annnkoor ,v 2e0t 1a2l .), are significantly higher. These arguments notwithstanding, also in countries with hd ii gs thuerrbcs r ea dl iet goar l psryostteecmt i ,o snu, cahs ua sd dt he na t i no cbrseearsvee di n dt uh rei nn gu mt hbee rG roef af ot rReeccl oe ss us iroens , tchaant cause significant delays for creditors to redeem collateral (Ghent, 2014). 5.2.2 Creditor Rights: Cross-State Differences in US Mortgage Law Even though all US states operate under the common-law system, state laws au cproons sdtihf fee rUennitt el edgSatlatthe es oorf if ee sr . dGi fhf ee rnet n(t2l0e 1v e4l)s torfaccreesdtiht oer hpi rsot ot er yc t oi of nmaonrdt gaar ge eb al aswe ds in different US states in terms of foreclosure procedures, redemption periods, restrictions on deficiency judgment, and foreclosure moratoria. She argues that the primary right of the creditor is the capability to foreclose without going to court. State-specific case law dictates whether a creditor is able to foreclose without seeking approval from a judge. Case law derives from a state’s early history and foreclosure rules have rarely changed significantly over time. There have been several attempts to create a uniform US mortgage code but without success, so Chapter 5 - The Impact of Creditor Protection

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