Strict Foreclosure

It may seem odd to see foreclosure preceded by the word “strict.” For those who have experienced it, the addition of the word strict may seem redundant. But strict foreclosure means that a homeowner has limited prospects for recovering their home. With non-judicial foreclosure, a homeowner has more opportunity to prevent their home from being taken away.

With a strict foreclosure, there is no sale. The house title transfers back to the lender. The lender can then employ a real estate agent to sell the house and the money from the sale is applied to debt still owed by the homeowner.

However, as we know homes don’t always sell for what they are worth (or what we think they are worth). In the case of strict foreclosure, if the sale does not bring in enough money to cover the debt, them the homeowner who defaulted is still responsible for the difference.

Foreclosure is to be avoided at all costs. Of the three kinds of foreclosure that I have described, this is the kind that you really do not want. With a judicial foreclosure, there is a lawsuit involved. A non-judicial foreclosure does not involve a lawsuit and a homeowner can find a way to pay what is owed or work out an agreement with the lender.

If you are facing foreclosure, call me at 410-507-2909 or write to me at john.day@longandfoster.com

You can also click on the title of this post and be directed to foreclosure information on my website.