Foreclosure
Foreclosure is the legal process by which a mortgage company can obtain legal ownership of a property. It strips all rights from property owner and evicts the occupant from the property. The foreclosure process can actually begin the moment the property owner is more than 30 days late on a property, however, this is almost never the case. Typically a notice of initiation of foreclosure proceedings begins when the property owner is 120 days behind on payments.
Deed Of Trust/Legal Issues
Because most home owners have a trust deed (Deed of Trust), the case does not have to go to court. The lender appoints a trustee to handle the paperwork. He/she is typically a real estate attorney that has no interest in the transaction, other than to facilitate for the "Notice of Trustee's Sale." This is the legal notice that is recorded with the county that the foreclosure process has officially begun and that the property cannot be sold for 90 days from the date of this notice. This notice must also be published in the newspaper or other public circulation each week for 4 weeks in that county.The home will then be auctioned off for sale to the highest bidder or will be retained by the lender and sold on the open market.
Laws are different from state to state, so please check your local Laws and Statutes or consult with a real estate attorney. Every situation is a little different. This information is only meant to be informative and a resource for you. If you have more in depth foreclosure questions or are seeking advice or counseling here are some web links for companies that may be of service to you:
www.foreclosurecounseling.com
www.hud.gov/foreclosure/index.cfm
www.stopforeclosure.com
www.stopforeclosurecenter.com