The Intricacies of Strict Foreclosure Process
Posted by | Posted in Foreclosure | Posted on 17-11-2008
In some of the states an equitable right is available for the lender that is called the “strict foreclosure”. Such a situation arises after the foreclosure sale is executed and the property becomes available to the buyer in such foreclosure sale. It may so happen that some other person might have some lien on the property in question. This will create a questionable encumbrance on the foreclosure sale as well as the property and may at time require loan modification.
The available course open to the creditor in such case will be to go for a court case to get foreclosure help and stop any chance of any other lien holder’s right on the property provided that such lien holder is a junior creditor or his rights are subservient to the main creditor. Thus the junior right holder’s rights of redeeming the senior debt is limited and if such lien holder fails to take appropriate action within the time period stipulated by the court, his rights will be lost and the title of the purchaser will be cleared.
State law in many states makes it mandatory for the creditor who seeks a foreclosure to have a search about the title of the property in question. The creditor is also obliged to notify all such persons who have any interest or right on the property in question. This is essential so that the persons concerned will appear and put forth their claims to sort out the matter. You can check in the stop foreclosure blogs for more information.
