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 ?
One mistaken word in the lengthy title of Citibank as trustee cannot be compared to cases where the foreclosing bank's name was entirely omitted.
(The remaining states, except for New York, require a foreclosing party to show that it was in possession of the note at the time it was lost.
The banks are being investigated for foreclosing on homes without having properly reviewed their paperwork.
Foreclosing on the complex would allow CW Capital and the bondholders of the senior mortgage, which itself has been diced up into various positions of seniority, to capture what value remains for themselves.
The court noted that the inmates failed to show that protracted periods of inclement weather, foreclosing outdoor activity, occurred with any frequency.
The teaching function may be largely a matter of foreclosing the acquisition of inaccurate and dysfunctional beliefs.
A decision of the Larnaca district court banning banks from foreclosing collateralised properties for which courts gave the green light before the new foreclosure law came in effect last year, is upsetting the banks' plans to tackle non-performing loans.
Citigroup Inc (NYSE: C) is to send cheques to 23,000 people it forgot to pay after wrongfully foreclosing on their homes.
As for the banks, they don't tell me if they're foreclosing on a property," Mr.
"FNF believes that these policies will not result in additional claims exposure to FNF because the new owners and their lenders would have the rights of good-faith purchasers which should not be affected by potential defects in documentation," the title insurance firm said, adding, "even if a court sets aside a foreclosure due to a defect in documentation, the foreclosing lender would be required to return to our insureds all funds obtained from them, resulting in no loss under the title insurance policy.