Understanding Foreclosure and the Foreclosure Process

What is foreclosure?

Foreclosure is a legal proceeding designed to prohibit or terminate a mortgagor’s rights to mortgaged property. Facing foreclosure in Morris County or any area is a difficult situation. This does not only involve financial matters, but it can bring emotional problems. Finding the solutions alone is never and never will be the answer. You may not be ready enough to do this on your own, which is why you need someone who can help and assist you through the entire process. You need to know the basics of foreclosure and evaluate your options.

Foreclosure or Property Repossession

A lender who wants to protect an interest in a loan may create a security interest in some collateral. If the lender meets the requirements to create and perfect a security interest, the lender will have a security interest in the property. If the borrower does not repay the loan according to the terms of the contract, the lender can repossess (repossess) the property. Typically, the lender prefers to hold cash and will therefore sell the collateral.

If the collateral is real estate, the loan will be called a mortgage and the taking of the property will be called a foreclosure. A person who buys repossessed or repossessed property buys only the legal interest of the seller. The buyer may lose the property if the foreclosure or repossession was unfair.

Strict Foreclosure

After default and recovery, the secured creditor may decide to retain the security in full payment of the debt. This remedy is called the secured party’s strict foreclosure right. Strict foreclosure may be attractive to the debtor for several reasons: first, the value of the collateral may be approximately equal to the debt; second, the expenses of short actions are avoided; third, there can be no subsequent dispute as to whether the resale price was fair; and fourth, the UCC or Uniform Commercial Code clearly establishes the requirements for carrying out a strict foreclosure.

Taking immediate action will help any homeowner deal with foreclosure. All one has to do is take meaningful steps to handle such a situation. If you are facing foreclosure right now and choose to sell your home in Morris County, the first step you can take is to find the right people who can ensure a quick and reliable solution to your dire situation.