Foreclosure By AdvertisementPresentation Transcript
Foreclosure By Advertisement The Process
Once the borrower is in default, the lender can start the foreclosure process. In most cases, the lender will not start the process until the borrower is 3 months in default.
Notice of Pendency and Power of Attorney
The Notice of Pendency and Power of Attorney is filed by the attorney for the lender is filed with the county Recorder or Registrar of Title.
Published Notice of Foreclosure
The Notice of Foreclosure is published in a legal newspaper for six weeks.
Service of Notice of Foreclosure
The Notice of Foreclosure is served on occupants of home subject to the foreclosure. Lenders will often mail a copy of the Notice of Foreclosure to the borrower if the borrower does not reside on the property but it is not legally required.*
*If you do not live on the property, make sure that if you have someone else residing on the property that they will notify you if a Notice of Foreclosure is served on them or you might not be aware that the foreclosure has started.
Service of Notice of Foreclosure on Junior Lienholders
Junior lien holders who filed a timely Request for Notice with the Country Recorder or Registrar of Title.
The Sheriff's Sale
The Sheriff's Sale is held at the County Sheriff's Office. Generally, only the representative for the lender who is foreclosing shows up at the court house for the sale. If someone else attends and bids at the Sheriff's Sale, they have to pay with cash or a cashier's check.
The date of the Sheriff's Sale will be set out in the notice served on the occupant of the property and was published in a legal newspaper.
If the borrower wishes to cure the default and stop the foreclosure, the borrower should contact the law firm conducting the foreclosure who will be able to tell the borrower the amount necessary to cure the default.
THIS MUST BE COMPLETED BEFORE THE SHERIFF'S SALE.
Once the Sheriff's Sale has been completed, the mortgage is gone and replaced with a Sheriff's Certificate.
The Period of Redemption
During the period of redemption, the borrower continues to have the right to reside on the property or can sell the property.*
To sell the property, the borrower must pay to the holder of the Sheriff's Certificate the amount paid at the Sheriff's Sale, plus interest and reasonable costs.
*The borrower can take advantage of their rights to save money that they will need to recover.
The Period of Redemption is normally 6 months but it can be reduced if they property has been abandoned.
Period of Creditor Redemption
Junior lienholders can redeem in the order of their priority after the borrowers' Period of Redemption expires. Junior lienholders will not redeem if the property is not worth more than the amount necessary for them to redeem.
The Expiration of the Period of Redemption
Once the Period of Redemption expires, the borrowers rights in the property have been extinquished.
If the junior lienholders do not redeem, their rights in the property are extinquised.
If the borrower refuses to leave the property, an unlawful eviction action (eviction) must be brought to have them removed.
If the foreclosed property is registered title (Torrens Property), a Subsequent Proceeding action must be undertaken to transfer the title to the holder of the Sheriff's Certificate.