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 ?
None of the exhibits submitted by Lewis Carter creates a genuine dispute of material fact regarding whether the United States is entitled to foreclose on Lewis Carter's properties, or identify specific facts as yet undiscovered that could aid Lewis Carter in opposing summary judgment.
They also seek to rapidly foreclose the opportunity for the client to continue utilizing maladaptive tactics and seeking permanently elusive goals.
The law would require lenders to determine if it would cost less to modify a loan rather than foreclose, and to tell borrowers of their right to ask for changes to their loans.
Joymar Associates (Florida District Court of Appeal, 2000), the plaintiff attempted to foreclose on defendant's property after receiving the note and mortgage after two previous assignments.
The suit claims that Deutche Bank breached its agreement to modify the man's home loan by starting a second foreclosure proceeding, that MERS doesn't hold the promissory note and doesn't have standing to foreclose, and that the defendants should show they possess the original note.
Bank of America and Bancorp, acting as proxies for the special servicer CW Capital, which itself has begun proceedings to foreclose on the property, charge in their lawsuit that Pershing and Winthrop must pay down the property's over $3 billion in senior debt in order to take control according to an inter-creditor agreement that dictates the actions the property's legion of lenders can take.
The issue before the Supreme Court was whether Metrobank could foreclose the mortgage without first getting court approval.
The lender, which placed advertisements in the daily press including the Cyprus Mail, said that it will first foreclose six properties in Paphos, on June 23 before proceeding with another fourin Nicosia on the following day.
First Southern also wants to foreclose on the property that secured the loan, which is at 10809 Kanis Road in Little Rock.
Fannie Mae--the initiator of the most foreclosure proceedings in the state by far--last month said it wouldn't foreclose on homes for loan modifications.
It's axiomatic that credit unions and other mortgage lenders don't want to foreclose on houses.
lender to halt foreclosures as a result of admitted robotic signings on legal paperwork needed to foreclose homes and other properties that may not live up to legal requirements to foreclose properties.