Obama's Foreclosure Plan

In strict foreclosure, there is no actual sale of property. Lender has to go to court and obtain court order mentioning that the borrower is in default. If he succeeds in that, the property is transferred in his name automatically. But court also give some time to borrower for the payment, if he fails in doing so, it goes to lender automatically. Then the lender has to record a certificate of foreclosure within 30 days which should have description of property, the foreclosure proceedings, the mortgage and the date the title became absolute.

In foreclosure by sale, the court decides time and manner of the sale, appoints a committee for said sale and also appoints three appraisers to determine the property value. The borrower has right to stop the sale by giving balance payment any time. Generally sale occurs on the property on a Saturday. A deposit of 10 percent of the property’s value is required from the winning bidder, unless the lender is the winning bidder.

This is legal information; it should not be treated as legal advice.