subject: Searching for Forclosed Homes for Sale [print this page] This is the legal process by which a mortgagee or other lien holder, usually a lender, obtains a court ordered termination of a mortgage's equitable right o f redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower default and the lender try to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclosure the equitable right of redemption. This can be bank or other secured creditor selling or repossessing a parcel of real property after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". The violation of the mortgage is a default in payment of a promissory note secured. Types of foreclosure. Within the U.S, Canada and many other countries, several types of foreclosure exist. The judicial sale and power of sale are in existence in U.S. but other modes of foreclosure are also possible in a few states. The judicial foreclosure is available in every state, and involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage, other lien holders, and mortgagor/borrower if any proceeds are left. The power of sale is authorized by many states, if a power of sale clause is included in the mortgage or if a deed of trust with such a clause was used, instead of an actual mortgage. This process involves the sale of the property by the mortgage holder without court supervision.
