Foreclosureisbasicallyalegalprocessbywhichalenderwhocanbeabank,mortgagecompany,etc.takesahomeowner’spropertyandrecoverstheirmoney, theyloaned, afterthepropertyownerstopspayingthemortgage.In de worstcasescenario,attheendoftheredemptionperiodthehomeownercanlosethepaidmoneyandalltherightsheorshehadontheproperty.Initially,accordingtolaw,oncethebuyerstopspayingmortgageinstallments.Thecompleteownershipofthepropertyusedtogointhehandsofthelender.However,inthelastfewyearsthelawchangedonthis,nowtheygiveenoughpossibletimetoabuyertopaybackmortgagebeforehandingtheirpropertytolender.
InUnitedStates,thebasicforeclosurelawisthesamebutdifferentstateshave differentvariationslikeinMassachusettsForeclosuredoesnotinvolveanycourtorder,oncealoanisdefaultpropertyautomaticallygoestolender.Basically,theprocessstartswhenthebuyerstopspayingmortgageinstallmentsonscheduledtimeforanypossiblereason.TheLenderfilesa“publicdefaultnotice."Nowthisprocessendsupineitheroffourways.
First,thebuyerpaysthelendertheamountdueor thebuyersellshispropertyandpaysthe amountdue, of ze veiling van theproperty, enhet laatste optie isthattheLendertakesownershipofthatpropertywithawrittencontractandsellsitintheopenmarket.TherearemanytypesofforeclosurebutinUnitedStatestwoaremainlyused.Oneis“foreclosurebyjudicialsale."Inthistypesaleofthepropertyisdoneunderthesupervisionofcourt,theamountreceivedas Hierdoor Ofthe salefirstsatisfiesthemortgagethanotherlienholdersandfinallyrestsofthemoneygoestoamortgager.
TheSecondtypeis“foreclosurebypowerofsale,"itinvolvesthesaleofthepropertybythelender,inthiscasewithoutthesupervisionofcourt.However,themoneygoesthesameway,firsttothemortgage,thenthelienholderand lasttothemortgager.Overallthemostimportantthingtokeepinmindisthatforeclosureisalegalmatterwhichshouldbetakenveryseriously,inordertokeepowningtheproperty.Thecorrect stepsshouldbetakenatarighttime, otherwisethepropertyautomaticallygoestolender.