Welcome to Foreclosure Guide
Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Definition of Foreclosure on Default of Payment of Property Loans
from:Foreclosure is a legal term often on the minds of many American homeowners. The average American family works hard to afford a home in which their family can live comfortably. Most families do not have the cash up front to pay for their dream house in full. They will seek a loan from a financial lending institution such as a bank or a mortgage company to buy this home.
To secure the loan, these financial lending institutions must be certain that they will get back their money back. Since a good paying job does not guarantee that a loan of this magnitude will be paid back, they require what is known as collateral, an asset they can seize in lieu of payments if the loan is in default (no longer being paid back).
Normally the home that is being purchased with the loan is put up as collateral and if the mortgagor (person seeking the loan) does not pay back the loan to the mortgagee (money lender, borrower), the house goes into foreclosure. The money lending institution may obtain a court order to proceed with the foreclosure and repossess or seize the house in lieu of repayment of the loan.
In some instances the financial lending institution may attempt foreclosure on a home or other property, but if the borrower repays the loan, a court of equity may rule in favor of the borrower who at that point will be able to keep the home or property in question.
The contract between the financial lending company and the borrower is called a mortgage or deed of trust. When a contract has been entered, effectively the lending company has agreed to give the borrower a certain sum of money in which to purchase the said property. The borrower agrees to pay this money back (signs a promissory note). The contract will also stipulate that a lien will be placed on the property meaning that the financial lending company has a right to seize the property (repossess it) if the loan is not repaid in the time frame that is stipulated and according to the conditions set out in the contract.
The process of foreclosure is used in any contract whereby real estate, homes, farms, land, and other immovable property has been obtained through a mortgage, and the mortgage holder has defaulted on the payments.
Judicial Foreclosure is available in all the American states. When the borrower defaults on the loan, the property is sold. The proceeds from the sale of the property first goes to repay the balance on the existing loan, then to any other lien holders, and finally to the borrower if any proceeds are left over. All transactions are done legally through the court system.
Foreclosure by power of sale is sometimes added as a clause in the mortgage contract that defines the foreclosure procedure without court intervention. This procedure follows the same order as the Judicial Foreclosure however faster since the courts are not involved.
Foreclosure Specific links
Feng Shui Your Home
- Watch Spacelift on Mevio.com
-- http://www.spacelift.mevio.com/
Foreclosure News
California Dreamin' hits the skids of foreclosures and IOUs - San Jose Mercury News
California Dreamin' hits the skids of foreclosures and IOUs San Jose Mercury News Others, like longtime tech worker Nancy Lopez, face a double-whammy of job loss and possible foreclosure. Laid off the other day — for the second time in 18 ... Fully Fund Our Schools |
Philadelphia program saves 60 pct homes from foreclosure - Reuters
Philadelphia program saves 60 pct homes from foreclosure Reuters PHILADELPHIA (Reuters) - A program to avert residential mortgage foreclosures has saved almost 60 percent of its participants from losing ... New Evidence on the Foreclosure Crisis Avoiding foreclosure scams Avoiding Foreclosure-Rescue Scams |
Wells Fargo: Baltimore's Foreclosure Lawsuit To Proceed - Wall Street Journal
 The Plain Dealer - cleveland.com | Wells Fargo: Baltimore's Foreclosure Lawsuit To Proceed Wall Street Journal The lending resulted in extraordinarily high rates of foreclosure in some of its most vulnerable districts, the city alleged, leading to millions of dollars ... City can proceed with Wells Fargo lawsuit |
Facing foreclosure, Curry sues ex-aide - Chicago Sun-Times
 Media Take Out | Facing foreclosure, Curry sues ex-aide Chicago Sun-Times Former Bulls player Eddy Curry, whose suburban mansion is in foreclosure, is suing his onetime ... Curry's Illinois home in foreclosure Foreclosure Is Latest Challenge for Knicks' Curry Curry's Chicago mansion in foreclosure |
When "New Evidence on the Foreclosure Crisis" On The Journal's Op ... - Huffington Post
When "New Evidence on the Foreclosure Crisis" On The Journal's Op ... Huffington Post "What is really behind the mushrooming rate of mortgage foreclosures since 2007?" asked Professor Stan Liebowitz of the University of Texas, Dallas on the ... |