Foreclose Online
The judicial foreclosure process involves filing a lawsuit to obtain a court
order to foreclose. It is used when there is no power of sale present in the
deed of trust or mortgage. After the court declares a foreclosure, the property
will be auctioned off to the highest bidder. This is not instantaneous, and
there is usually a wait time between when the suit was filed and the date the
property is sold at auction.
In most states the date the mortgage was signed determines the length of time a
lender must wait between filing the suit and proceeding with the foreclosure
sale. The wait time can be anywhere between 3 and 12 months. The owner may file
a waiver of time limit, which allows the sale to proceed immediatley. When this
occurs, the lender loses the right to pursue a deficiency judgment.
The foreclosure sale process involves publishing a weekly ad for three weeks.
The first must be run for 30 days prior to the sale. Each owner must be served
with notice of the foreclosure sale by the sheriff when the first ad is run. The
sheriff conveys title by a deed given immediately after the sale is completed.
The owner may reside in the property until the foreclosure sale, as long as the
owner is not committing waste, or destroying the property.
Whenever there are multiple liens against a property, they are applied in the
order of lien priority.
1. IRS
2. Other Tax Authority
3. First Mortgage/Lien Holder
4. Second Mortgage/Lien Holder
5. Other Junior Liens (in order of priority)
6. Mechanic's Liens
7. Association Fees