Wex Legal Dictionary
In 2008 when the economy took a downturn, my house, along with many other people’s homes, went into foreclosure because I could not make the payments. Where it is available, foreclosure by power of sale is generally a more expedient way of foreclosing on a property than foreclosure by judicial sale. Time from notice of foreclosures to actual property sales depends on many factors, such as the method of foreclosure (judicial or non-judicial). If homeownership retention is not possible, counselors should discuss short sales and deeds in lieu of foreclosure as ways to help a borrower transition to more affordable housing. This process is generally much faster and cheaper than foreclosure by judicial sale.
Upon the balance being paid, the Sheriff’s Deed will be given to the individual – as directed in the order confirming sale. The PTFA protects any legitimate rental arrangement created before title to the property is changed as a result of the foreclosure. When a lender uses the nonjudicial foreclosure process against a borrower who fails to pay on a mortgage for his or her primary residence, the lender gives up the right to collect a deficiency judgment against the borrower. The second type of foreclosure, foreclosure by power of sale, involves the sale of the property by the mortgage holder not through the supervision of a court.
Servicers may refer borrowers to specific HUD-approved agencies that provide foreclosure prevention services under the NFMC or HUD Grant programs or they may provide borrowers with a web site address, , to find a qualified agency in their area. In most situations, insurance requirements guarantee that the lender gets back some pre-defined proportion of the loan value, either from foreclosure auction proceeds or from PMI or a combination of those.
This content is not, nor is it intended to be, legal advice and should not be relied on in lieu of consultation with an attorney. Just like there are consequences for you, the foreclosure process is time-consuming and expensive for them. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. The lender usually bids at the auction, in the amount of the balance due plus the foreclosure costs. If you are facing the possibility of foreclosure or if your house is currently being foreclosed on, help is available.
WARNING: Since the Notice of Default is recorded as a public document, many fraudulent companies and scam artists search the public records to send defaulted borrowers offers to help” them avoid losing their homes to foreclosure. If you are an occupant of a foreclosed property where the new owner filed an eviction case, talk to a lawyer or call the Tenant Foreclosure Hotline at 1-888-495-8020 to learn about your rights. Three types of foreclosures may be initiated at this time: judicial, power of sale and strict foreclosure.