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Foreclosure
by
Martin Lukac
Foreclosure under a mortgage requires a
court ordered sale conducted by the sheriff or other
court-appointed official. Foreclosure process is called
judicial foreclosure. In the event of default, the
mortgage accelerates the due date of the dead to the
present and notifies the defaulted debtor to pay off the
entire outstanding balance at once. If the debtor fails
to do so, the mortgage initiates a lawsuit, called a
foreclosure action, in the county where the land is
located. The purpose of his legal proceedings to a
charge toward the county sheriff to seize and sell the
property. The judge’s order is called an order of
execution. Acting under the order authentication, the
sheriff notifies the public of the place and date of the
sale. This requires posting notices and the property and
the courthouse and ran an advertisement of the sale in a
newspaper. |
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1. Redemption. At any time up until the sheriff's sale,
the debtor may save the property by paying the mortgage
note is due. This up right to save or redeem the
property before the sale is called the equitable right
of redemption. The debtor might also be obligated to pay
delinquent interest, court costs, attorneys fees, and
sheriff's fees in order to redeem the property.
2. Sheriff's sale. The sheriff's sale is a public
auction normally held at the courthouse door, and anyone
can bid on the property. The property is sold to the
highest bidder and the proceeds are used to pay for the
costs of the sale and to pay off the mortgage.
If the property does not make enough money in the sale
to pay off the mortgage, the debtor may be able to
obtain a deficiency judgment against the debtor for the
remaining debt. To obtain a deficiency judgment, the
creditor must apply to the court within three months of
the judicial sale.
In some states, such as California, deficiency judgments
are prohibited if the mortgage secured a loan to
purchase 1-4 unit personal residence occupied by the
owner.
Post-sale redemption.
After the sale, the debtor has an opportunity to save or
redeem the property. The debtor can do this by paying
the purchaser the amount paid for the property plus
acute interest from the time of the sale. This right to
redeem the property on the sheriff's sale is called
statutory right of redemption.
Dependent on the court congestion and the availability
of the surety for foreclosures, and judicial mortgage
foreclosure may take anything from several months to
several years from the time of the default until a
sheriff's deed is delivered to the purchaser, which
finally divests from the debtor of title.
Martin Lukac, represents, #1 Loans USA(www.1LoansUSA.com),
a finance web-company specializing in real
estate/mortgage market. We specialize in daily updates,
rate predictions, mortgage rates and more:
info@1LoansUSA.com |
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