Understanding How Foreclosures Work
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. Troubled homeowners who would like to find out more about their loan modification options can do their own research to gain a better understanding of the loan modification process. If the property does not sell at auction, the mortgagee keeps it, and later resells it in a normal real estate sale.
And finally, after the house is sold, ownership will transfer to the high bidder at the auction and the eviction process will start in the courts. The debtor may petition that the sale be set aside and the writ of possession cancelled for the reason that the mortgage was not violated or the sale was not made in accordance with the provisions thereof.
If the examination report reveals a cause of action sufficient justify suing, you should seek out a competent personal injury attorney to negotiate settlement with or to sue the lender. We have had clients that begged for loan modifications and have had clients that sent the bank full mortgage payments that were post due only to see the bank return the payments and pursue foreclosure.
Foreclosure by power of sale, also known as nonjudicial foreclosure, is authorized by many states if a power of sale clause is included in the mortgage or if a deed of trust with such a clause was used, instead of an actual mortgage. 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.
If you’re looking at a home that’s about to be sold at an auction, you’ll need to contact the trustee/attorney to ask any questions about the house before the auction. Because the right of redemption is an equitable right, foreclosure is an action in equity.