1. What remedies might a borrower seek to prevent foreclosure?
2. What are the steps to be taken in a non-judicial foreclosure?
3. What are the steps to be taken in a judicial foreclosure?
4. Difference between a strict foreclosure and an entry foreclosure.
The process whereby the real property securing the loan is sold and the proceeds are used to pay the outstanding debt.
1 Loan Default Remedies
1.2 reinstatement of loan
The borrower is required to pay delinquent sums and late charges.
It's an agreement in which the lender agrees to refrain from foreclosing on the property and the borrower postpones and/ or reduces payments for a period of time. It may apply if the borrower is facing health issues or temporary unemployment.
1.4 Deed in lieu of foreclosoure
1.5 File for bankruptcy
2 No Sale Takes Place (2 Types of Foreclosure)
2.1 Strict Foreclosure
A court hearing determines a lender's right to foreclose. The property is transferred to the lender. The defendant-borrower receives nothing because no sale has taken place.
2.2 Entry Foreclosure
The lender takes possession of the property and after a specified time period receives title to the property
3 Non-Judicial Foreclosure
Primarily occurs in deed of trust states.
3.1 1. Trustee records a notice of default
3.1.1 2. Notifies the borrower that property may be sold without court action
18.104.22.168 3. Notice of trustee's sale is published
22.214.171.124.1 4. Public auction is held
3.1.2 Redemption Period
126.96.36.199 Notice of Rescission
3.2 Paralegal prepares
3.2.1 1. Demand Letter
188.8.131.52 2. Notice of Default
184.108.40.206.1 3. Notice of Trustee's Sale
220.127.116.11.1.1 4. Trustee's Deed
4 Judicial Foreclosure
4.1 1. Filing of a complaint naming borrower and all parties with interests
4.1.1 Judgment: court authorizes sale of property
18.104.22.168 Redemption Period
The borrower pays loan, plus penalties, costs and attorneys' fees.
22.214.171.124 clerk of the court issues a certificate of sale
4.1.2 Default Judgment
4.2 Paralegal prepares
4.2.1 1. Demand Letter
126.96.36.199 2. Complaint
188.8.131.52.1 3.Notice of lis pendens
184.108.40.206.1.1 4. Motion for Default
220.127.116.11.1.1.1 5. Motion for Summary Final Judgment