|Foreclosure: Nuts and Bolts|
- Loan originates. 2. Borrower falls behind in payment. 3. Lender attempts to correct with notices, letters and telephone calls. 4. Debt gets further in arrears; lender decides to foreclose on the property. 5. Banks attorney files foreclosure action with the county clerk or recorders office. 6. Notice of default lets people know the foreclosure is pending.
Three Basic Types of Foreclosure
- In non-judicial foreclosure, no court action is needed. As soon as the loan is in default, the lender can exercise the power of sale clause and take the property back. 2. In a judicial foreclosure, the courts oversee the process. 3. In a strict foreclosure, the lender dictates the terms.
- Sell the property 2. Get refinancing. Owner generally needs 30% equity to do this. 3. Raise own funds.
- Foreclosure laws vary across the country. 2. Check the laws in your state. 3. Always work with an attorney who specializes in foreclosures.