Foreclosure is the legal process by which a mortgagee, or other lien holder,
usually a lender, obtains a termination of a mortgagor's equitable right of redemption, either by court order or by
operation of law (after following a specific statutory procedure).[clarification needed] Usually a lender obtains a
security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the
borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the
equitable right of redemption if the borrower repays the debt. While this equitable right exists, it is a cloud on
title and the lender cannot be sure that it can successfully repossess the property. Therefore, through the process
of foreclosure, the lender seeks to foreclose the equitable right of redemption and take both legal and equitable
title to the property in fee simple. Other lien holders can also foreclose the owner's right of redemption for
other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or
The foreclosure process as applied to residential mortgage loans is a bank or
other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has
failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust".
Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the
property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its
mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If
the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing
balance of principal and fees the mortgagee can file a claim for a deficiency judgment.
If you have defaulted on your mortgage or believe that you soon
will, a loan modification can adjust the terms of your loan, keep you out of residential foreclosure and help you
to remain in your home. These types of modifications must be negotiated with your mortgage lender prior to reaching
an agreement. You need to work with a foreclosure attorney that understands your needs and can present your
situation to the lender.
There are several steps to the modification process and at Glugover Law & Mediation we are here to listen and
to guide you through and in the end help you to save money on your monthly mortgage payments.