Title Search - Foreclosure - Types of Foreclosure - Miscellaneous Documents - US Mortgages

Module 10 – Foreclosure, Easement & Miscellaneous Documents

Foreclosure:

            Foreclosure is the legal process whereby a lender (bank or secured creditor) terminates the owner.

Deed in Lieu of Foreclosure:

A deed to real property from a defaulting borrower and accepted by the lender to avoid the necessity of having the lender go through formal foreclosure proceedings.

Used by owners to voluntarily convey the title of their property to the mortgagee/beneficiary (lender) to avoid the negative credit consequences of a foreclosure. Lenders are generally reluctant to accept a “deed in lieu” unless the title is free and clear of any other encumbrances junior to theirs and the owners execute an estoppel affidavit acknowledging that they are acting volitionally with informed consent. A homeowner can qualify for a deed-in-lieu of foreclosure if:

They are in default and do not qualify for any of the other options

All attempts at selling the house before foreclosure were unsuccessful; and

There is no other mortgage in default.

A Person having a lot of property, but the owner tells its my one and only property, so give time to pay the loan amount for the particular property.

Bankruptcy:

A Legal proceeding involving a person or business that is unable to repay outstanding debts.

Tax Sale Deed:

            If the owner unable to pay taxes for the property, when the tax department will send warning notice to the owner to pay the delinquent taxes, if there is no proper response for that notice then the tax department will selling the property to the new buyers and wipe off the old delinquent taxes and tax certificate will be provided for that property.

Types of Foreclosure:

1.      Judicial Foreclosure

2.      Non - Judicial Foreclosure

1. Judicial Foreclosure (Mortgage):

            A court action taken to collect a debt owed.

A foreclosure that is processed via a court action. Usually limited to a collection action on an involuntary, judgment lien that automatically.

Non - Judicial Foreclosure (Deed of Trust):

            Non-judicial foreclosures are processed without court intervention with the requirements for the foreclosure established by state statutes. Non-Judicial foreclosures are possible due to a “Power of Sale” clause in the mortgage or deed of trust.

When a loan default occurs, the homeowner will be mailed a default letter and in many states a Notice of Default will be recorded at approximately the same time. If the homeowner does not cure the default a Notice of Sale will be mailed to the homeowner posted in public places recorded at the county recorder’s office and published in area legal publications. After the legally required time period has expired a public auction will be held with the highest bidder becoming the owner of the property subject to their receipt and recordation of the deed. Auctions of non-judicial foreclosures will generally require cash or cash equivalent either at the sale or very shortly thereafter.

 

 

Miscellaneous Document

Power of Attorney (POA):

            Power of attorney is to appoint a person, or an agent known as the attorney‐in‐fact to act on the behalf of someone known as the principal.

The ability of attorney‐in‐fact is limited by the language of Power of Attorney itself and the attorney may in‐fact does not act beyond other than that of Power of Attorney.

Covenants, Conditions and Restriction:

The document that controls use and restrictions of a property through the rules and restrictive limitations applicable to land owners in a specific subdivision development, condominium development or co-operative housing facility.

Affidavit:

            An affidavit is a sworn statement put in writing. When you use an affidavit, you're claiming that the information within the document is true and correct to the best of your knowledge. Like taking an oath in court, an affidavit is only valid when you make it voluntarily and without any coercion. Saying something true. It’s a support document.

Lis pendens or Notice of Pendency of action:

A legal notice recorded to show pending litigation relating to real property and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation.

            It is lawsuit pending, which is filed in the public record and it is serves the constructive notice to the property owner’s.

Financial Statement (UCC - Uniform Commercial Code):

A statement filed by a lender in the public records office identifying the borrower with the address and establishing a secured interest in personal property of borrower pledged as collateral.

Homestead Declaration:

It is recorded to declare the owner’s principal place of residential as per some state status. It protects home against judgment up to specific amount.

Bankruptcy:

A Legal proceeding involving a person or business that is unable to repay outstanding debts.

Probate:

Probate is the legal process of settling a dead person's estate: specifically, distributing the decedent's property confirming the validity of a will.

Divorce:

Divorce is the process of terminating a marriage or marital union. Divorce usually entails the canceling or reorganizing of the legal duties and responsibilities of marriage, thus dissolving the bonds of matrimony between a married couple under the rule of law of the particular country or state.