What is Foreclosure?
Foreclosures could be the worst legal process a homeowner experiences. The emotion it brings is the polar opposite of the closing day excitement of receiving
the keys to your home. Foreclosure is when keys to the home no longer work because the lender has re-keyed the locks.
Foreclosure is a legal proceeding in court, instituted by a lender, to enforce the mortgage against the homeowner who owes the lender. It occurs when the owner
is in default of the debt or fails to perform some act to which him or her is bound. Foreclosure is the legal process by which the homeowner looses his or her interest
in the property because of failure to comply with the terms or conditions of the mortgage. Foreclosure results in a public sale of the property covered by the lien
with the proceeds of the sale used to pay/satisfy the lien holder's claim. Foreclosure terminates all rights of the debtor in the property.
In a foreclosure suit, some creditors will receive their money and some creditors might not. Real estate property taxes, special assessment liens, and federal
estate taxes will take precedence over all other liens. Then, based on the date of recording, mortgages, vendor liens, federal income taxes, state corporation
income tax liens, intangible tax liens, and judgement liens are considered junior liens.
• Homeowner Options before Foreclosure
• Real Estate Owned Property
