Foreclosures

A lot of buyers and investors want to buy a foreclosure for a good deal, but most of them don't know almost anything about the foreclosure process.

On my next few articles every Saturday I will discuss foreclosures, short sales and foreclosing process. I will be appreciate on any questions or comments.

The first you need to know about foreclosures that could be judicial and non - judicial.

Foreclosure by judicial sale, more commonly known as Judicial Foreclosure is available in every state and required in many, involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. As with all other legal actions, all parties must be notified of the foreclosure, but notification requirements vary significantly from state to state. A judicial decision is announced after pleadings at a (usually short) hearing in a state or local court. In some fairly rare instances, foreclosures are filed in Federal courts.

Foreclosure by power of sale, which is also allowed by many states if a power of sale clause is included in the mortgage. This process involves the sale of the property by the mortgage holder without court supervision. It is generally more expedient than foreclosure by judicial sale. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale.

Texas is a state with non - judicial (power of sale) foreclosures.