Foreclosure is the legal process of taking possession of a mortgaged property when an home owner is unable to fulfill his payment for the property. The owner thus loses all rights to the property.
Types of Foreclosure
There are 3 general types of foreclosure.
In many countries including the U.S., the most common types of foreclosures are foreclosure by judicial sale and foreclosure by power of sale or non-judicial foreclosure. Another not so popular type of foreclosure is strict foreclosure.
Judicial foreclosure involves the sale of the mortgaged property under the supervision of a court. A law suit is first filed against the mortgager when they fail to keep up with their loan payments. Loan modification depot is one agency that specialises in helping people deal with foreclosure problems
This is also known as power of sale forfeiture. It is applied when a power of sale clause is included in the loan agreement. A notice of default is raised against the mortgager when there is a default in making payments. The sale of the property in this case is not supervised by a court and is not as expensive as the judicial foreclosure process.
This is regarded as a minor type of foreclosure and is only available in few states of the U.S. including Vermont, Connecticut and New Hampshire. It is a method adopted from old British foreclosure practice. If the debtor is not able to continue his payment after a stipulated time granted by a court, the property is seized and claimed by the lender until payment is made. There is no foreclosure sale in this system it is applied where the property value worth more than the debt.
It is always a wise decision to seek professional counsel from loan modification lawyers before entering into any mortgage agreement. You can find more about affordable loan modification service by visiting loan modification depot.