The Foreclosure Procedure

Foreclosure procedures differs from state to state, so its important to investigate foreclosure laws in the state where the property is located. About half the states use the "judicial" process which starts with the mortgage document, a device used to pledge the property as security against the loan.

When a default occurs, the lender will attempt to end the homeowner's rights of possession to the property. The lender must file suit and prove in court that it has the right to sell the property to recover its loss by virtue of the default and as stipulated in the signed mortgage agreement. If awarded a final judgment from the court, the lender will proceed with the foreclosure and the property will be scheduled for sale. Properties are sold at public auction under the direction of the court in the county where the property is located. The successful bidder becomes the new owner of the property. About 80% of the time the successful bidder is the lender, the original mortgage holder.

Some states also permit a non-judicial foreclosure. This is used when a power of sale clause exists in a mortgage or deed of trust in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default.

Home Refinancing

Home refinancing can be just the right move when owners are ready to make major upgrades, or need to access cash. Understanding the benefits and drawbacks of Home Mortgage Refinancing, and Home Equity Loan Refinancing will insure that you make an informed choice at the right time. You'll need to have a good handle on Home Refinancing Rates and know all about Increasing Home Value before you begin any project or sign any contract.