Distress Sale, Bank Sale, Foreclosure, Power of Sale, etc. These are some of the terms being commonly used today due to the real estate meltdown. In this article, we will talk about Foreclosure which is the starting point for the sale under distress or bank sale, etc.
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lienholders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue HOA dues or assessments.
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgement.
If you are - or someone you know is - in a difficult financial situation and running the risk of loosing the home to the bank due to non-payment of the mortgage, you need to contact me ASAP - BEFORE IT IS TOO LATE!! As you know once the bank takes over the home, you are immediately liable for payment of bank charges, late fees, interest per day, bank lawyer's fees, your lawyer's fees, etc. etc. which sometimes amounts to between $10,000 to $40,000 which is then deducted from the proceeds of the home when it is sold, leaving the consumer with almost nothing or a deficit of thousands of dollars.
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The following are some of the financial lenders involved in the mortgage business:
Bank of Montreal, Bank of America, ING, TD, FirstLine, CIBC, HSBC, Laurentian, MCAP, Scotia, BNS, First, Royal, RBC.
