What is Foreclosure
Foreclosure is a legal proceeding designed to bar or to extinguish the rights of a mortgagor to the property mortgaged. Facing foreclosure in Morris County or any area is a trying situation. This does not involve financial matters alone but it may bring about emotional issues. Finding the solutions alone is never and will never be the answer. You may be not ready enough to do this on your own, the reason why you need someone who can help you out and assist you through the whole process. Knowing the basics of foreclosure and evaluating your options are indeed necessary.
Mortgage Foreclosure or Repossession of Property
A lender who wants to protect an interest in a loan may create a security interest in some collateral. If the lender follows the requirements for creating and perfecting a security interest, the lender will have a security interest in the property. If the borrower does not repay the loan under the terms of the contract, the lender can repossess (retake) the property. Usually the lender prefers to have cash and thus will sell the collateral.
If the collateral is real estate, the loan will be called a mortgage, and taking possession of the property will be called a mortgage foreclosure. A person who buys repossessed property or foreclosed property buys only the seller’s legal interest. The purchaser may lose the property if the foreclosure or repossession was wrongful.
After default and repossession, the secured party may decide to retain the collateral in complete satisfaction of the debt. This remedy is called the secured party’s right of strict foreclosure. 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 court actions are avoided; third, there can be no subsequent controversies about whether the resale price was fair; and fourth, the UCC or Uniform Commercial Code sets out straightforwardly the requirements the requirements for effecting strict foreclosure.
Taking an immediate action will help any homeowner deal with foreclosure. All there is to do is to take significant steps to handle such situation. If you are facing foreclosure at this very moment and opt to sell your Morris County house, the first step that you may act upon is to look for the right people who could guarantee a fast and reliable solution to your desperate situation.