Decree of Foreclosure and Sale
Contents
Unraveling the Decree of Foreclosure and Sale
Understanding the Legal Steps in Mortgage Default and Property Seizure
What Is a Decree of Foreclosure and Sale?
A decree of foreclosure and sale, often referred to simply as a decree of foreclosure, is a court-issued declaration stating that a property will enter foreclosure due to the borrower's default on their mortgage. This legal process allows lenders to recover outstanding debts by selling the property.
Understanding Decrees of Foreclosure and Sale
When borrowers default on their mortgage payments, lenders have the right to foreclose on the property, seizing it to cover the unpaid debt. Foreclosed homes are typically auctioned off, with proceeds going towards repaying the lender. A decree of foreclosure and sale is a crucial step in this process, ensuring that all legal requirements are met before the property is sold.
Rights of Redemption With a Decree of Foreclosure and Sale
Some states grant borrowers the right of redemption, allowing them to reclaim their homes by paying off the outstanding debt even after the foreclosure process has begun. This can be done through refinancing or by paying the foreclosure sale price along with any accrued fees and interest. Government programs also exist to assist homeowners facing foreclosure, offering options for refinancing or financial assistance.
Alternatives to a Decree of Foreclosure and Sale
In states with non-judicial foreclosures, lenders are not required to obtain a court-issued decree of foreclosure. Instead, they can proceed with foreclosure through other means, such as issuing notices of default and sale. This process often moves more quickly compared to judicial foreclosures, where court involvement is required.