| The American dream is something that everyone | | | | loaned. Once the property is repossessed it is then |
| wants. Unfortunately, sometimes against our wishes, | | | | sold at a public auction to the highest bidder, often |
| foreclosures occur. But what exactly is a foreclosure? | | | | times the price is not as much as the debt incurred. |
| It is a long process of legal and formal action taken | | | | This particular procedure is not as profitable to the |
| against a property owner for failure to pay. This | | | | bank as others are and it is commonly used |
| process is involved and can be a nightmare for any | | | | throughout the United States. |
| home owner to endure. The actual procedure is | | | | A non-judicial foreclosure is a method started by a |
| often times difficult for a person to understand. This | | | | notice of default. It is a more 'legally strategically' |
| article is designed to shed a little more light on this | | | | means of acquiring the property. When the debtor |
| subject and educate each individual as to the practice | | | | has failed to pay a month's payment or more the |
| of a foreclosure. | | | | process then begins. Lawyers and agents are |
| Each state has its own time frame set. By law the | | | | involved but the legal notices given, such as; eviction, |
| foreclosure course must conform to a limited and | | | | default notification and the letters of intent to sell are |
| specified period. Although the time frame varies from | | | | then delivered to obtain a legal standing for the |
| state to state the actually method of a foreclosure | | | | foreclosure. This 'power of sale' clause does not |
| usually remains the same. There are also different | | | | require an official judgment as it is agreed upon in the |
| types of foreclosures that a home owner can | | | | original contract. |
| experience. Each state usually has a stipulation as to | | | | So, in short if a debtor fails to pay the mortgage |
| the most common kind of foreclosure or the only | | | | lenders what is specified in the binding agreement, a |
| ones that they will honor and utilize under their set of | | | | foreclosure process will begin. As previously stated, |
| property laws. | | | | each state has its own policies whereas a court |
| A judicial foreclosure is in agreement by contract | | | | judgment would be issued or an out of court |
| when a bank loan is sought and adhered to. The | | | | procedure would result. It would be dependant upon |
| contract then states that the bank will repossess the | | | | both the contractual obligations and specifications and |
| property to satisfy the entire debt that the bank | | | | the state property laws. |