More than One Type of Foreclosure
May 26, 2009 by Admin
Filed under Stop Foreclsoure General
There are several types of foreclosure. The most common types of foreclosure are judicial sale foreclosure and foreclosure by power of sale. The laws dictating the foreclosure process can vary vastly from state to state. The timeline for foreclosure is slightly different for different types of foreclosure. When and how a mortgage company can begin the process of foreclosure are outlined in the mortgage documents. Understanding how foreclosure works can help you deal with foreclosure and get the appropriate foreclosures help in a timely manner. Most of the time, the mortgage holder starts the process of foreclosure when the homeowner defaults on the mortgage payments.
Judicial Foreclosure
The most common foreclosure type is no doubt the Judicial foreclosure. This type of foreclosure is available in practically every state and it is the sole type of foreclosure in a lot of states. The law governing the judicial foreclosure requires the mortgage holder to seek the supervision of a court for the sale of a home in foreclosure. The involvement of the court slows down the foreclosure process so the homeowner will have longer to come up with ways to stop foreclosure and find the right foreclosure help.
Power of Sale Foreclosure
If your mortgage document or deed of trust contains the power of sale clause then your state allows the power of sale foreclosure. The power of sale clause makes it legal for the mortgage company to do the foreclosure and sell your property without court supervision. The process of foreclosure under the Power of Sale rule is much more speedy than the Judicial foreclosure process. This law makes it more convenient for the mortgage holder to foreclose on homeowners in trouble.
The foreclosure sale proceeds go to the mortgage companies first, then to other lien holders. Then if there is anything left of the proceeds, the homeowner sometimes gets what is left. However, in this bad real estate market, the sale proceeds are almost always much lower than the amount that owed to the mortgage holders so, not only the homeowner may not get anything, he or she can even be pursued for the remaining amount owed.
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