a judicial proceeding meant to take back real property because of non-payment of a loan

      • The HUD (Housing and Urban Development) counselor explained to us that you don’t need to pay fees for foreclosure prevention help. The money can be used to pay the mortgage instead.

      • When a property owner is no longer able to make their mortgage payment and defaults on the loan, the property goes through a process known as foreclosure. The lender initiates the sale of the property by auction through a third party called a trustee. (http://www.miloanderson.com/wp-content/uploads/2010/05/Buying-Foreclosed.pdf , accessed 4-5-2011)

      • To foreclose under [the] procedure [known as judicial foreclosure], the lender has to file a lawsuit so as to obtain a court order to foreclose. • [A] non-judicial foreclosure • is also called  foreclosure by power of sale. It is based on a deed of trust, which typically contains a “power of sale clause.•  In the event of a default by the borrower,  this clause pre-authorizes the lender to sell off the property to pay off the home loan balance.  It enables the trustee (your lender or lender’s representative) to initiate the foreclosure process and sell the repo[ssessed] home without having to get a court’s approval. (http://www.helium.com/items/610918-what-is-the-difference-between-judicial-and-non-judicial-foreclosure , accessed 4-5-2011)

 

Note: Information found in Spanish about this concept reads as follows: Proceso de ejecución de hipoteca por el impago de la deuda que la hipoteca garantiza, el cual culmina con la venta del bien hipotecado, ordinariamente en venta judicial. Es, pues, un tipo de recuperación judicial (repossession), pero hipotecaria.