The lender’s first step towards a foreclosure is to record and mail the borrower by certified mail a Notice of Default, sometimes titled Notice of Default and Election to Sell. The lender must then wait three months, then may record, serve by certified mail on the borrower, and post on the property, a Notice of Sale.

How is foreclosure legal?

Foreclosure, legal proceeding by which a mortgagor’s rights to a mortgaged property may be extinguished if the mortgagor (borrower) fails to live up to the obligations agreed to in the mortgage. Foreclosure is commonly by a court-decreed sale of the mortgaged property to the highest bidder, who is often the mortgagee.

What is foreclosure in legal terms?

Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.

Which is the first stage of the foreclosure process?

From the date of this legal notice, normally 90 days time (or grace period) is allowed to the borrower to clear the outstanding balance of the mortgage loan and get back the rights of ownership of the property. This is the first stage of the Foreclosure process and is known as Pre-foreclosure period.

Which is the legal definition of a foreclosure?

Statutory foreclosure is foreclosure by performance of a power of sale clause in the mortgage without need for court action, since the foreclosure must be done in accordance with the statutory provisions governing such sales.

What is the timeline for a judicial foreclosure?

Timeline for a Judicial Foreclosure 1 When Foreclosure Starts. In most cases, under federal law, a foreclosure can’t start until you’re more than 120 days delinquent on the loan. 2 Initiation of Judicial Foreclosure. 3 Foreclosure Sale. 4 Redemption Period. 5 Eviction. 6 For More Information. …

How long do you have to sell a house to avoid foreclosure?

Only 90 days time is allowed for clearance of the outstanding dues to the lender to avoid foreclosure. The sale of the property takes place on the date and time specified in the Notice of Sale at the county court.