A foreclosure is a legal process whereby a lender takes back real property after a borrower has failed to make loan payments. Initially, the law had it that a mortgage default resulted in the automatic ownership of the property by the holder of the mortgage (sometimes referred to as the mortgagee). Furthermore, your bank will also need to order a NOD, or Notice of Default, at the Office of County Recorder.
The second scenario where you could face more jeopardy after the foreclosure auction is in states that use a mortgage process rather than deed of trust process. Most lenders typically won’t threaten homeowners with foreclosure until two or three payments have been missed.
The advantage of purchasing a foreclosure property is, in short, price,” says John Soffee, a Realtor with Freedom Realty Services in Midlothian, Virginia. A short sales means the bank will accept less than what you owe to satisfy your debt. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.
I did not appear but through this agent I forced the foreclosure, and but few days (no more, believe me, than the law allowed) were given John Claverhouse to remove his goods and chattels from the premises. In California and some other US states, original mortgages (the ones taken out at the time of purchase) are typically non-recourse loans; however, refinanced loans and home equity lines of credit are not.
This period ranges from anywhere from a few days to a month or more, and it starts immediately after the foreclosure sale. In all other instances, this is how the next steps in the foreclosure process will occur: Whether a power of sale clause exists, a preliminary hearing must take place.