The foreclosure process involves default notification, the home redemption period, filing a foreclosure case and auctioning the property, according to SFGate. Vacating the property by the defaulter to give way for the new owner completes the process.Continue Reading
The default notification is the responsibility of the lender and involves reminding the borrower of his failure to settle the loan within the loan period through a notice, notes SFGate. The notice also contains solutions that the borrower must explore to remedy the situation. If the borrower fails to act according to the notice, depending on the state, the lender may issue him with an ultimatum of 30 days to clear all the remaining loan through a notice of acceleration in order to redeem the property from foreclosure. One way to redeem the house is for the borrower to speed up any sale process and clear the mortgage. Although pleading with the lender for more time to clear the loan may not be successful during the redemption period, the lender may agree to extend the loan period if the borrower demonstrates a possibility of financial ability.
Filing the foreclosure case occurs simultaneously with issuance of the notice of acceleration and the case begins immediately the notice expires, states SFGate. Upon realizing that the borrower is unable to clear the loan, the court permits the lender to schedule for auction of the property, meaning that foreclosure is unavoidable at this stage. During the auction, the lender accepts to sell the property to the highest bidder to compensate for the loan.Learn more about Credit & Lending