The mortgage company then holds a public auction without the assistance of a court or sheriff. The lender sends out notices to the homeowner and all required parties as determined by state law until the end of the state-mandated waiting period. Non-judicial foreclosure –With this process, also called a power of sale, no court is needed to handle the foreclosure.The borrower is given time to redeem the property (pay the outstanding delinquency in the court ordered judgement) and if this doesn’t happen, the lender begins the process of selling the property at an auction. If the outstanding delinquency is not paid or the borrower does not have a defense or does not appear in court, a judgment is granted by the court to the lender. The process begins when the lender files a law suit against the borrower demanding repayment of the delinquent payments on the mortgage. Judicial foreclosure –This type of foreclosure is allowed in all states and required in some.Once foreclosed, if the homeowner is unable to pay within the court-ordered timeframe, the mortgage holder becomes the owner and the property can be sold immediately. In this scenario, the lender can file a lawsuit as soon as the law permits the lender to do so after the homeowner has defaulted on a loan. Strict foreclosure – A strict foreclosure is allowed in only a few states.To understand what a foreclosure is, you should read about three different kinds of foreclosures: Types of ForeclosuresĪll foreclosures are not the same.

However, to be prepared for what lies ahead, it’s important to understand the foreclosure process and appreciate what differentiates a foreclosed home from other properties. First-time homebuyers may be able to get a bigger house than they could otherwise afford. Buyers are often attracted to the idea of buying a foreclosed home because of the low price.

Sell your foreclosed home