foreclosure

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Foreclosure

A procedure by which the holder of a mortgage—an interest in land providing security for the performance of a duty or the payment of a debt—sells the property upon the failure of the debtor to pay the mortgage debt and, thereby, terminates his or her rights in the property.

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.

Strict foreclosure refers to the procedure pursuant to which the court ascertains the amount due under the mortgage; orders its payment within a certain limited time; and prescribes that in default of such payment a debtor will permanently lose his or her equity of redemption, the right to recover the property upon payment of the debt, interest, and costs. The title of the property is conveyed absolutely to the creditor, on default in payment, without any sale of the property.

foreclosure

n. the system by which a party who has loaned money secured by a mortgage or deed of trust on real property (or has an unpaid judgment), requires sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, when the debtor fails to make payment. After the payments on the promissory note (which is evidence of the loan) have become delinquent for several months (time varies from state to state), the lender can have a notice of default served on the debtor (borrower) stating the amount due and the amount necessary to "cure" the default. If the delinquency and costs of foreclosure are not paid within a specified period, then the lender (or the trustee in states using deeds of trust) will set a foreclosure date, after which the property may be sold at public sale. Up to the time of foreclosure (or even afterwards in some states) the defaulting borrower can pay all delinquencies and costs (which are then greater due to foreclosure costs) and "redeem" the property. Upon sale of the property the amount due is paid to the creditor (lender or owner of the judgment) and the remainder of the money received from the sale, if any, is paid to the lender. There is also judicial foreclosure in which the lender can bring suit for foreclosure against the defaulting borrower for the delinquency and force a sale. This is used in several states with the mortgage system or in deed of trust states when it appears that the amount due is greater than the equity value of the real property, and the lender wishes to get a deficiency judgment for the amount still due after sale. This is not necessary in those states which give deficiency judgments without filing a lawsuit when the foreclosure is upon the mortgage or deed of trust. (See: mortgage, deed of trust, forced sale, execution, notice of default)

foreclosure

the right to take mortgaged property in satisfaction of the amount due. Where a mortgagor has defaulted on his obligations under the terms of the mortgage, the mortgagee has a number of powers available to him to protect his investment. One of these is the power to foreclose. Foreclosure can be effected only by an order of the court that involves, first, the granting of an order of foreclosure nisi, which effectively gives the mortgagor six months' grace within which to raise the sums due; if the mortgagor has failed to do this, the foreclosure becomes absolute, whereupon the rights of the mortgagor in the property cease and become vested in the mortgagee.

Ask a Lawyer

Question

Country: United States of America
State: Florida

We have an upcoming date concerning foreclosure on our home during which they are going to set a sale date. We need to delay this first meeting by a week so we can get a payoff figure from the mortgage company. Is there any way to file paperwork or reasons that we can file a motion that will help buy us some time?

Answer

It is difficult to do unless the parties agree...you can say you are unavailable for some serious reason etc.
References in periodicals archive ?
After a peak in foreclosure activity during this year's second quarter, with 911 new foreclosures scheduled across all five boroughs, the third quarter brought a slight slowdown, falling six percent quarter-over-quarter.
As it relates to foreclosures, the CFPB requires lenders to end what is termed "dual track foreclosures." Dual track foreclosures are foreclosures where the defendant is in the process of being reviewed or has been approved for loss mitigation, i.e., a loan modification, deed in lieu, or short sale, yet the foreclosure continues, hence the term dual track.
Dan Basnight, a lawyer with Kaufman & Canoles, said the pool of foreclosures is shrinking because the economy is improving and lenders are more willing to accept loan modifications.
MBA also reported that the percentage of loans where foreclosure had been started during the fourth quarter was down 10 basis points from the fourth quarter of 2014 and down 2 basis points from the third quarter of 2015.
So far this year Lane County has had 854 foreclosures, a 43 percent increase from the same point a year ago.
The Housing Finance Authority also published a chart comparing foreclosures and building permits since 1977, showing that foreclosures follow building booms.
Approximately four million American homeowners experienced foreclosure between 2007 and 2012 (Schwartz and Dewan 2012).
As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
Typically, foreclosure fast-track laws require more than simple vacancy in order to qualify for the fast-track, which protects against the fast-track being misused but may prevent all vacant foreclosures from being eligible for fast-tracking.
For December, there were 45,000 completed foreclosures, down from 52,000 in December 2012, a year-over-year decrease of 14 percent.
The backlog of pending foreclosures caused a boom in foreclosures in some so-called (https://docs.google.com/viewer?a=v&q=cache:EULwj7Wmk1oJ:www.mbaa.org/files/ResourceCenter/ForeclosureProcess/JudicialVersusNon-JudicialForeclosure.pdf+&hl=en&gl=us&pid=bl&srcid=ADGEESh6wQObWZf6Vyi5KxX9ZO7qL-oEzzgq9DkUdrvuBCMUC7Cd3Pqv5jlXRfp18PvstWJ69QONN2UATFBN47fLd5gO73NhjaZhOfqaxyTZwELN0c7eNnuQD-Q9XvJbN-zTy8aW5jco&sig=AHIEtbT8XoCuDDVBYLg1wiVxgOxquTBGgg) judicial foreclosure states where the processes tend to take longer because they involve the courts .
Compared to September 2011, however, there was a 37 percent increase in foreclosures.