What Is A Foreclosure And How Does It Work?

foreclosureEspecially in the case of homeowners who own multiple properties, they may find that their mortgage company has had the locks changed on a house in foreclosure. To successfully use a lease-option to stop the foreclosure process, you must negotiate lease payments that cover most or all of your mortgage payment, property tax and insurance obligations – enough that you can make up any difference and still pay to live somewhere else.

Within 10 days of filing the foreclosure lawsuit, the lender must send by certified mail a copy of the complaint and a “Notice to Lien Holders and Tenants of Filing of Action” to you and anyone with an interest in your property, such as your tenants and other lenders.foreclosure

In fact, a lis pendens specifically indicates that the property is facing foreclosure, and the document will show anyone, such as a title company or prospective foreclosure refinance lender, researching the real estate that it is involved in a lawsuit.

4 Therefore, through the process of foreclosure, the lender seeks to immediately terminate the equitable right of redemption and take both legal and equitable title to the property in fee simple 5 Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowner association dues or assessments.

If a mortgagor or another party acting by authority from the mortgagor (record owner) wishes to redeem the property through the Sheriff’s Office, the redeeming party must contact the Ramsey County Sheriff’s Office Civil Process Unit not less than seven days prior to the anticipated redemption date.