Stop Foreclosure Assistance - Everything You Need to Know About Home Foreclosure

Receiving a home foreclosure advisory is perhaps one of the most dreaded things that any homeowner would ever get. As simple as the notice may appear, the words printed in a home foreclosure notice is more than enough to bring a sense of fear and uncertainty to the homeowner since he or she is now faced with the reality that he or she is about to lose his or her home.

Being educated about the legalities of home foreclosure may not eradicate any feelings of uneasiness you may now be experiencing. However, having some insight on how foreclosures are processed and handled can equip you to be able to take the proper steps in order to save your home from being lost completely.

Definition of Foreclosure

The first thing that you would need to know is exactly what a foreclosure is. The term foreclosure refers to a legal process that is taken by a mortgagee or lien holder. When a foreclosure is taken out, a court order is issued to an individual who has taken out a mortgage or a loan from a financial organization. In this court order, the mortgagee or lien holder states in detail the cancellation of any equitable redemption rights a borrower may have with regards to a particular piece of property in relation to the mortgage or loan that was initially taken out. As a result, the borrower is now in debt towards the lender of the funds that have been used to finance the purchase of the property, in this case your home.

Reasons for the Release of a Foreclosure Notice

The most common reason why a foreclosure notice is issued on behalf of the lender is when the owner of the home, or any other piece of property for that matter, has been unable to pay any outstanding bills consecutively for a certain period of time. Some of these bills may include unpaid overdue taxes, unpaid contractor bills, overdue assessments and unpaid HOA dues.

The foreclosure notice is generally between a financial organization such as a bank or a secure creditor and the borrower of the funds that have been used to finance a piece of property. When an individual takes out a loan or a mortgage, a certain form of collateral must be presented and offered to the creditor by the borrower. Usually, the collateral may be in the form of any piece of property the borrower owns. This could be either something that is considered as immovable, such as your home or mobile, such as a car. When the borrower fails to meet his or her financial obligations to the creditor for a certain period of time, the foreclosure notice would then be issued to the borrower which would then allow the creditor to seize the property by default.

Kinds of Foreclosure Notices

The two most common types of foreclosure notices issued throughout the United States are the Judicial Foreclosure Notice and the Power of Sale Foreclosure Notice. The Judicial Foreclosure Notice refers to the foreclosure of a piece of immovable property such as a home which is then placed on sale and becomes available throughout the entire United States. The sale of the property is handled by the court which had issued the foreclosure notice. The money that is received through the sale of the mortgaged property is then awarded to the financial institution as a form of payment for the mortgage or loan taken out by the borrower. If for any reason the amount attained from the sale of the property is higher than the outstanding debt of the borrower, then the remaining amount will then be awarded to the lien holders. The borrower would only be awarded a particular sum of money only if after awarding lien holders a particular portion of the sale is there still some money left.

The second type of foreclosure notice is the Power of Sale Foreclosure Notice. Unlike the Judicial Foreclosure Notice, the Power of Sale Foreclosure Notice is only recognized and used in certain parts of the United States. In this case, a Power for Sale clause is stipulated on the promissory note that is signed by the borrower. Upon the failure of the borrower to meet the obligations that is stated in the promissory note, the financial institution, and not the court, oversees the sale of the mortgage property in order to payoff the outstanding debt owed by the borrower. This is because unlike the Judicial Foreclosure Notice, the Power of Sale Foreclosure Notice is issued by the financial institution and not by a local court. As such, the Power of Sale Foreclosure Notice takes a lot faster to be processed.

Saving Your Home from a Foreclosure

The good news for homeowners who have received a foreclosure notice is that they still have time to still keep their home and save it from being sold off to pay an outstanding debt. The equitable redemption rights that have been cancelled from the promissory note can be re-instated for as long as the outstanding debt to the creditor or bank has been paid in full and proper documents showing the payment can be provided by the borrower to the court.