Foreclosureisbasicallyalegalprocessbywhichalenderwhocanbeabank,mortgagecompany,etc.takesahomeowner’spropertyandrecoverstheirmoney, theyloaned, afterthepropertyownerstopspayingthemortgage.In worstcasescenario,attheendoftheredemptionperiodthehomeownercanlosethepaidmoneyandalltherightsheorshehadontheproperty.Initially,accordingtolaw,oncethebuyerstopspayingmortgageinstallments.Thecompleteownershipofthepropertyusedtogointhehandsofthelender.However,inthelastfewyearsthelawchangedonthis,nowtheygiveenoughpossibletimetoabuyertopaybackmortgagebeforehandingtheirpropertytolender.
InUnitedStates,thebasicforeclosurelawisthesamebutdifferentstateshave differentvariationslikeinMassachusettsForeclosuredoesnotinvolveanycourtorder,oncealoanisdefaultpropertyautomaticallygoestolender.Basically,theprocessstartswhenthebuyerstopspayingmortgageinstallmentsonscheduledtimeforanypossiblereason.TheLenderfilesa“publicdefaultnotice."Nowthisprocessendsupineitheroffourways.
First,thebuyerpaysthelendertheamountdueor thebuyersellshispropertyandpaysthe amountdue, tai ne huutokauppa theproperty, javierintäpinnan lopullinen vaihtoehto isthattheLendertakesownershipofthatpropertywithawrittencontractandsellsitintheopenmarket.TherearemanytypesofforeclosurebutinUnitedStatestwoaremainlyused.Oneis“foreclosurebyjudicialsale."Inthistypesaleofthepropertyisdoneunderthesupervisionofcourt,theamountreceivedas Tuloksena ofthe salefirstsatisfiesthemortgagethanotherlienholdersandfinallyrestsofthemoneygoestoamortgager.
TheSecondtypeis“foreclosurebypowerofsale,"itinvolvesthesaleofthepropertybythelender,inthiscasewithoutthesupervisionofcourt.However,themoneygoesthesameway,firsttothemortgage,thenthelienholderand lasttothemortgager.Overallthemostimportantthingtokeepinmindisthatforeclosureisalegalmatterwhichshouldbetakenveryseriously,inordertokeepowningtheproperty.Thecorrect stepsshouldbetakenatarighttime, otherwisethepropertyautomaticallygoestolender.