Judicial foreclosure occurs when a court decides that a piece of property must be sold so that the mortgage or deed of trust is paid. This usually occurs when a mortgage does not have a power of sale clause, so that foreclosure proceedings must be taken care of by a State’s court.
When you are facing foreclosure, there are two main methods that can be used by the lender to try and recover the outstanding amount of the mortgage or loan. In both cases, the lender must force the sale of your house to recover the cost. The lender will either have to work through the courts, or follow a set of procedures over a given amount of time.
Judicial foreclosures take place in the courts. In this case, the sale is overseen by the court, and any money made from the sale goes to the mortgage provider first, and then to any other creditors. If any money remains from the sale, it will come to you. The mortgage lender files a lawsuit against you when you stop making payments on your property.
If you are involved in a judicial foreclosure case, it is imperative that you have legal representation to protect your assets and your rights as a citizen. In judicial foreclosure cases, the property sale is overseen by the court. Any money made from the sale goes to the mortgage provider first, and then to any other creditors. If any residual money remains from the sale, it will come to you. However, if you choose to stop making payments on your property, the mortgage lender is legally able to file a lawsuit against you. Thus, having proper legal counsel throughout this process is crucial, to ensure both parties understand the details of the agreement, your assets are kept safe, and you have the strongest legal defense for your trial.
An experienced judicial foreclosure attorney can defend you if a judicial foreclosure lawsuit is filed against you, helping you reach the best possible outcome by building a solid defense for your case with supporting evidence that will hold up in court. If you are facing a judicial foreclosure, search for a foreclosure attorney in your area today to help you through this difficult time.
Judicial foreclosure law is complex and varies by jurisdiction, so attempting to enter into a judicial foreclosure trial without proper legal counsel and representation is extremely difficult. To protect your assets against judicial foreclosure, contact an experienced attorney to represent you as soon as possible.
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