Foreclosure is a legal procedure in which property pledged as security is sold to satisfy the debt. A mortgage lender’s rights can be enforced through foreclosure if the borrower defaults on mortgage payments or fails to fulfill any of the other obligations in the mortgage.
The foreclosure process varies among states. The type of procedure depends on whether the state uses deeds of trust or mortgages. Generally, states that use mortgages conduct judicial foreclosures. A judicial foreclosure is one that must proceed through the court system. States that use deeds of trust conduct non-judicial foreclosures, using an out-of-court process.
Under the judicial procedure, a mortgage lender must prove in the country court that the borrower is in default. The lender hires an attorney, who files a lawsuit against the borrower to establish the precise amount owed. Furthermore, the attorney provides evidence of the default and obtains the court’s approval to continue with the foreclosure.
For states with non-judicial foreclosures, the deed of trust will contain a power-of-sale clause. The clause allows the trustee to initiate a foreclosure sale without having to file a lawsuit or go to court. The trustee must issue a notice of default. If the borrower does not respond, the trustee may sell the house.
Looking for Options to Avoid Foreclosure?
1) Short Sales
If your property is worth less than what is owed, we specialize in negotiating the best short sale offer with your lender.
2) Bankruptcy
We facilitate the legal process with one of our strategic partners.
3) Deed in Lieu
Otherwise known as “Cash for Keys” — We will negotiate the best financial terms with your lender.
4) Forbearance
We will negotiate the best financial terms and payment schedule with your lender.
5) Loan Modification
We will negotiate the best payment schedule and financial terms with your lender.
For more info about the options that are available, please contact us for a free, no-obligation consultation to discuss possible solutions. Our experts are here to help, at no cost to you.
* Please note that most lenders will not consider the above foreclosure alternatives within 45 days of a scheduled auction/sheriff sale date.
