There are 3 types of Foreclosure.
They are: Judicial Foreclosure; Non Judicial Foreclosure, and Strict Foreclosure.
I will describe the three, but the rules can be very different from state to state.
If you are facing foreclosure you should contact someone at a title company or a lawyer to find out the rules for foreclosure in your state.
Judicial Foreclosures A judicial foreclosure is the kind of foreclosure that involves the court system and a judge.
Thus, the word judicial is used.
In this type of foreclosure The Lender must sue you and take you to court.
The judge must hear from you and your lender both.
Then he must decide whether you should keep your home, or whether it should be taken by the Lender to pay for pay the Lender back for the money you borrowed from them to buy your home.
The lender files a law suit or complaint in court, and records a Lis Pendis to foreclose against you.
At the start of the process, you will be served with a complaint by the court and then you will have a chance to appear in court to contest the foreclosure lawsuit.
This judicial foreclosure method is usually used when you used a mortgage to purchase the property.
It is required by law in some states.
It is an option in some other states.
It can take far longer to foreclose on your home if the Lender must use this method, then when the Lender can use the Non Judicial Foreclosure method.
Non Judicial Foreclosure The non judicial foreclosure is the fastest and most common type of foreclosure.
In states that allow this type of foreclosure your Lender does not need to sue you and take you to court.
If you are in default in your payments, the Lender can just demand that you pay your loan current, or he can take your home by having the county auction off your home at the courthouse.
This type of mortgage loan a Deed of Trust and a Promissory Note to secure the property.
If you have a power-of-sale clause in your loan paperwork for your home purchase, a non judicial foreclosure can also be used.
If your Lender is beginning a non judicial foreclosure against you, the process will be explained to you in your loan paperwork.
If you find this confusing you should talk to someone at a title company, or consult with an attorney to be sure you understand both your rights, and the rights of your Lender.
You will usually be mailed a default notice from the Lender.
If you don't cure the default (usually payments which have not been made) in a specified amount of time, the home can immediately be moved to auction.
It is important to know that each state has different procedures for non judicial foreclosures.
Some states allow only Judicial Foreclosures or Non Judicial Foreclosures.
Some states allow either to be used.
Strict Foreclosure The last type of loan foreclosure, and the least used, is known as Strict Foreclosure.
Strict Foreclosure can only be used in a few states and is normally only used if you owe more than your home is worth.
In this type of foreclosure, if you default on your loan, the lender files a lawsuit and gives you a certain amount of time to cure the default.
Your property will go back to the lender if you do not cure the default within your allotted amount of time.
Historically, Strict Foreclosure was the first type of Foreclosure used.
If you are facing Foreclosure, you should get expert advice on your rights to try to keep your home.
A lawyer is the best way to find out how your County and State handle foreclosures.
You Can Ask Your Lender About Other Ways To Settle Your Problem And Keep Your House In today's economy, most Lenders have had to take back too many homes through Foreclosure.
They lose a great deal of money with each foreclosure and end up with empty homes that are too hard for them to sell and get back the money they loaned.
The Lender would rather help you keep your house.
They know the Economy is very bad.
The also, know your ability to pay may have changed in this Economy.
They want to help you get current on your home and keep your house.
It is a-win win situation.
You can apply to your Lender for a Loan Modification.
This Modification is not a refinance.
It is merely the changing of the terms of your loan, such as lowering your interest in order to also lower your monthly payment.
They can put all of your missed payments back into your loan, so that you can start over with just the cost of one payment.
You can do this yourself, or you can hire a professional Loan Modification Company to negotiate new terms for you.
There are very good companies with good track records if you would rather use and experienced professional to help you.
Be sure and ask for their costs and what you are supposed to get for payment.
Get references from this company and call them to be sure that what they tell you about their capabilities is legitimate.