Having a safe, decent and affordable place to live allows people to put down roots and communities to grow strong. Homes in any stage of foreclosure may require significant repairs just to make them inhabitable. Once an established waiting period has passed, the mortgage company, rather than local courts or sheriff’s office, carries out a public auction. The problem of low paid people buying expensive houses was circumvented by removing safeguards (like the down payment) in place to prevent such financial recklessness from occuring in the first place.
Thus, Plaintiff’s claims for injunctive relief (Count II), wrongful foreclosure (Count VI), and negligence (Count VIII) are not subject to dismissal at this time. If you and the lender have not worked out a plan to avoid foreclosure, the lender can record a Notice of Default in the county where your home is located, at least 30 days after contacting you for the foreclosure avoidance assessment.
If you do not pay what you owe, a Notice of Sale is recorded (at least 90 days after the Notice of Default is recorded). An owner of a small business may apply for a continuance as provided in this subsection if the real estate subject to foreclosure is used for the small business.
Statutory foreclosure is foreclosure by performance of a power of sale clause in the mortgage without need for court action, since the foreclosure must be done in accordance with the statutory provisions governing such sales. Mikew, your comment about a dog accidentally lapping up anti freeze as an analogy to the mechanisms which triggered the foreclosure crisis is very good.
This type of foreclosure, also known as statutory foreclosure, is allowed by many states if the mortgage includes a power of sale clause. It is not just court-sales, foreclosures and grow-op homes where you will get deals from, motivated sellers are often where the best deals are made, if you can find them.