There are a few types of mortgage foreclosure. The most common types of foreclosure are judicial sale foreclosure and power of sale foreclosure. The laws concerning the foreclosure process can vary vastly from state to state. The timeline for foreclosure is slightly different for different types of foreclosure. How and when a mortgage holder can begin the process of foreclosure are included in the mortgage documents. Knowing how foreclosure works can usually help you avoid foreclosure and get the appropriate foreclosures help in a timely manner. Usually, the mortgage company starts the process of foreclosure once the homeowner misses a lot of mortgage payments.
Judicial Foreclosure
Judicial Foreclosure is likely the most common type of foreclosure. It is available in every state and it is the only type of foreclosure in a lot of states. The judicial foreclosure law requires the mortgage holder to seek the supervision of a court for the sale of a property in foreclosure. The involvement of the court makes the process slower so the homeowner will have some time to come up with ways to stop foreclosure and seek the right foreclosure help.
Power of Sale Foreclosure
The power of sale clause can be found in your mortgage document. If you can find it then your state allows the power of sale foreclosure. The power of sale clause allows the mortgage holder to foreclose and sell your home without the court being involved. The foreclosure process under the Power of Sale rule is much more speedy than the other foreclosure process. This law makes it faster for the mortgage company to foreclose on homes in default.
The proceeds of the foreclosure sale go to the mortgage companies first, and then to other lien holders. Then if there is anything left of the proceeds, the homeowner may get what is left. However, in this slow real estate market, the sale proceeds are usually much lower than the amount that the mortgage companies are owed so, not only the homeowner may not get any of the proceeds, he or she can even be pursued by the mortgage company for the remaining amount owed.
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