Judicial Foreclosure

Did you know that there is more than on kind of foreclosure?
For the next few days, I’ll be looking at the different kinds of foreclosure, so you can be better informed about the process.

A judicial foreclosure is one that involves the court system. If a homeowner defaults on a mortgage, then the lender can bring a lawsuit against the homeowner. If the homeowner does not respond to the lawsuit, the lender wins the case. If the homeowner does respond, then there is a hearing. If the judgment is in the lender’s favor, then the home goes to auction, where it will be sold to the highest bidder. The highest bidder becomes owner of the property once the court has confirmed the sale.

There is a judicial foreclosure when there is no power of sale clause in the trust/mortgage deed. The inclusion of a power of sale clause means that the lender can foreclose on the property without a lawsuit.

If you have questions about foreclosure, either because you are afraid of it, it has happened to you or you are interested in buying a foreclosed property, visit my website. You can also feel free to contact me at any time. Call 410-507-2909 or e-mail me at john.day@longandfoster.com.

Check back on Monday for more information on foreclosure.