Foreclosures Explained

[hoapres]

This is an old post of mine from the mortgage forum.

 

Foreclosures Explained - A short tutorial

[hoapres]

Bump

 

Along with that one needs to become aware of your state foreclosure statutes.

[hoapres]

Bump

 

With the request that issues be placed in new threads. This is just general background information which hopefully explains the foreclosure process. As always, you need to become aware of your state foreclosure laws.

[SportsNut]

Your quote: "Remember the new owner takes title to the property as of Jan 1., 2000 being the date that the first mortgage was executed."

 

That statement would be accurate in some deed of trust states but not likely in judicial states where the title is vested in the name of the fee simple owner until the foreclosure sale is completed and confirmed or finalized per the state's laws. Then and only then, in judicial states, would title transfer to the foreclosing lender and the ownership is vested in their name effective on the date of transfer or recordation of proper documents.

 

Small point maybe, because in reality most folks probably don't follow all the intricate details of the process except that when it happens to them and usually in past tense, do they follow what really happened and why. Also as to possession there are far too many variables to speculate on how it works, especially since some recent changes have been enacted as to legitimate tenants residing in the foreclosed property for 90 days past the sale or confirmation of sale. However, there are still some states where there is NO eviction but a setout the day of the sale for any and all belongings that are on the premises. So again, there are so many variables, even from county to county within a state, as to implementation of things like possession of the property, post foreclosure.

Edited May 17, 2010 by SportsNut

[hoapres]

Actually the statement in question most likely does apply in judicial foreclosure states. If the 1st forecloses then the 2nd recordered after the 1st will be extinguished and no longer encumber the foreclosed property.