Posted on: 31st Mar, 2004 03:09 am
Judicial Foreclosure is the legal process where a lender repossesses the borrower's home because the borrower has defaulted on the mortgage. At the end of the foreclosure process, the court sells the house at an auction called a sheriff's sale.
The lender starts the proceedings depending on the terms and conditions of the loan agreement, the note and the mortgage that you signed at loan settlement, and your state's law. Some loans have an acceleration clause that allows the lender to call the loan due as soon as you default. Otherwise, whenever a loan is around 120 days past due, the lender files for foreclosure. The borrower may occupy the house until they are evicted after the sale.
How long can borrower occupy property after the sale?
After the judicial sale has been confirmed by the foreclosure judge, the new owner will file a request with the court to have the current occupants evicted. The new owner will then make a request with the Evictions Department to have a sheriff go to the house with an eviction notice. After the eviction notice has been served, how long the occupant(s) have to remain in the house is determined by state law.
Does the borrower pay for deficiency?
If the lender is unable to recover the total balance of the unpaid loan balance, the borrower has to pay the deficiency between the unpaid debt and the sale price, depending on the state. Some states do not allow a lender to get a deficiency judgment if the loan is a purchase money mortgage taken for buying the borrower's primary residence and secured by the property. These laws do not apply to second mortgages and investment properties.
Can borrower get back property after the sale?
Some states allow the borrower to save or reacquire the property even after the sheriff's sale. All the borrower has to do is pay the purchaser (who is most often the lender) the amount the house was sold for. Sometimes, the borrower may be able to work out an agreement that will allow him to occupy the property as a tenant.
What are the effects of foreclosure?
In order to have all subordinate liens wiped out, the plaintiff will join all the subordinate lien holders to the foreclosure suit. If the subordinate lien holders want to recover their interest, they need to bid for the property at the foreclosure sale.
Once the foreclosure suit is filed, it will remain on the borrower's credit report for 7 years after the sheriff's sale. This means the borrower will not be able to qualify for a new home loan with a reasonable interest rate for several years.
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The lender starts the proceedings depending on the terms and conditions of the loan agreement, the note and the mortgage that you signed at loan settlement, and your state's law. Some loans have an acceleration clause that allows the lender to call the loan due as soon as you default. Otherwise, whenever a loan is around 120 days past due, the lender files for foreclosure. The borrower may occupy the house until they are evicted after the sale.
How long can borrower occupy property after the sale?
After the judicial sale has been confirmed by the foreclosure judge, the new owner will file a request with the court to have the current occupants evicted. The new owner will then make a request with the Evictions Department to have a sheriff go to the house with an eviction notice. After the eviction notice has been served, how long the occupant(s) have to remain in the house is determined by state law.
Does the borrower pay for deficiency?
If the lender is unable to recover the total balance of the unpaid loan balance, the borrower has to pay the deficiency between the unpaid debt and the sale price, depending on the state. Some states do not allow a lender to get a deficiency judgment if the loan is a purchase money mortgage taken for buying the borrower's primary residence and secured by the property. These laws do not apply to second mortgages and investment properties.
Can borrower get back property after the sale?
Some states allow the borrower to save or reacquire the property even after the sheriff's sale. All the borrower has to do is pay the purchaser (who is most often the lender) the amount the house was sold for. Sometimes, the borrower may be able to work out an agreement that will allow him to occupy the property as a tenant.
What are the effects of foreclosure?
In order to have all subordinate liens wiped out, the plaintiff will join all the subordinate lien holders to the foreclosure suit. If the subordinate lien holders want to recover their interest, they need to bid for the property at the foreclosure sale.
Once the foreclosure suit is filed, it will remain on the borrower's credit report for 7 years after the sheriff's sale. This means the borrower will not be able to qualify for a new home loan with a reasonable interest rate for several years.
Related Articles
- How Judicial/Non-judicial Foreclosure works
- How to avoid foreclosure-17 ways to get out of mortgage mess
- How to decide between foreclosure and bankruptcy
- Loss Mitigation: Avoid Foreclosure with Loan Workout Options
Related Forum Discussions
- Can I sell property before foreclosure?
- What are the credit effects of foreclosure?
- What if the mortgage is in foreclosure and the borrower wants to continue it?
- Can I be taxed after foreclosure?
- Can I get tax lien redemption on foreclosed property?
- How long after a foreclosure refinance can I refinance again?
- Should I file bankruptcy to avoid foreclosure?
Hi Tabitha!
Welcome to the forums!
You may apply for a short sale with the lender as you still have few days of time. There is no harm in trying.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
You may apply for a short sale with the lender as you still have few days of time. There is no harm in trying.
Feel free to ask if you've further queries.
Sussane
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