Real Estate Foreclosure and Tips Knowledge Base


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Index of Real Estate Foreclosure Tips Articles

Foreclosure is a process by which the lender of a "mortgage" or a "deed of trust". or other holder of a lien, legally obtains the security from a real estate mortgagor's (borrower) redemption equity right, either by an order of the court or by other law procedure (after following the required statutory procedures. Most often a lender secures a security benefit from a home borrower who pledges or mortgages an asset (the property) as security for the loan.

If the borrower does not make his payments and the lender attempts to foreclose on the property, the courts of equity may give the borrower an equitable right to redeem if the borrower brings the debt current. Although this equitable right is there, it becomes a cloud upon title of the property and therefore the lender using the foreclosure process seeks to foreclose on this equitable redemption right and proceed with both equitable and legal fee simple property title.

After the process is completed, the lender may sell the real property and retain any proceeds to pay the mortgage plus legal costs, while it is most often stated that "the lender foreclosed on the mortgage or loan". If the note contained a recourse clause (non-purchase money) therefore if the sale doesn't bring enough money to pay off the existing principal balance plus fees the mortgagee (lender) can institute a suit for a deficiency judgment.

Other types of lien holders are also able to foreclose on the owner's redemption rights for other debts, like unpaid contractors' bills , past due taxes or past due homeowners' association assessments or dues. So let's take a look at the list of articles about foreclosure.


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