Understanding Foreclosure Law And
The Different Types Of Foreclosure

Foreclosure law is divided into two practices. Every state adapted one or both of the following methods of foreclosure.

Judicial Foreclosure

After you default on your mortgage, the lender files a law suit through the court to foreclose. This process is used where allowed and when there is no Power Sale
clause in the contract. The lender may also choose to sell the property to the highest bidder at the local courthouse steps. Judicial Foreclosure requires that a notice of sale describing the reason and the terms of the sale must be published in a local news paper for 4 weeks before the sale can take place.

This process of foreclosure is used when a power of sale clause is signed at the time the mortgage is issued. This gives the lender the power to sell the property in the case of
default on the mortgage. If the power sale does not give the location, the terms and the time of the sale, a notice must first be published for 4 consecutive weeks in a local newspaper describing the terms, reason and the time of the sale. The property is then auctioned for cash at the courthouse steps to the highest bidder. A power sale may be reviewed by the court to assure the accuracy
of the procedure.

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