An Overview of Foreclosure Law

Foreclosure is a remedy lenders use against borrowers who own property that was used as collateral for a loan. The lender hasn't been paid, and wants to be. So the lender wants to have the collateral for the loan sold off to satisfy the debt.

In short, if you purchased property relying on a mortgage but haven't paid the mortgage back, the lender can take the property back. It will have to follow the laws of the state the property is in (unless your mortgage specifies otherwise), and the process will be expensive and time consuming.

Here is what you will find in this section:

What Is Foreclosure And How Does It Work?
When a lender--usually a bank--tries to take your property away from you, the law protects you, and your property, for as long as possible.

Defending Yourself Against Foreclosure
If street fighting is your forte, then defending against a mortgage foreclosure action will make you feel right at home. Even so, it won't be a picnic fighting to keep your home.

Alternatives To Foreclosure
Deeds in lieu of foreclosure are relatively well known, but are rarely used properly to the advantage of the property owner who is in default of the mortgage, usually for nonpayment rather than some technical violation.

Foreclosure By Advertisement
"Foreclosure by advertisement" is typically used when the mortgage document is a trust deed (which conveys title to a neutral third party (a trustee) during the period in which the mortgage loan is outstanding) and is more common in the western part of the United States.