How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask CalAttorney2 Your Own Question
CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10238
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
71563194
Type Your Real Estate Law Question Here...
CalAttorney2 is online now
A new question is answered every 9 seconds

When a bank forecloses on a property do they ask

Customer Question

When a bank forecloses on a property do they ask for financial disclosures from the original homeowner ?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.
Dear Customer, thank you for using our service. I would like to assist you today. Responses may have a short delay for review and research.
No, when a bank forecloses, they go through one of 2 processes (generally it depends on the state as to which process they go through - trustee's sales are preferred).
Both require notice be given to the homeowner, length of notice and number of notices vary by state.
(See this link for a state by state breakdown: http://www.nolo.com/legal-encyclopedia/50-state-chart-key-aspects-state-foreclosure-law.html)
1) A trustee's sale: the trustee auctions the property after giving public notice, and the property is sold to the highest bidder, with proceeds distributed first to the trustee to pay for costs of sale, then to the lien holder (mortgage company), then to any other lien holders (second mortgage, judgment liens against the property, etc.), and if there is any surplus, that goes to the homeowner.
(See this link for information on a "non judicial" foreclosure: http://www.nolo.com/legal-encyclopedia/timeline-nonjudicial-foreclosure.html)
2) Judicial foreclosure: this requires the mortgage company to go to court and receive a judgment of foreclosure - once the bank gets the judgment, they can then go through the same auction process as the trustee sale with the above distribution, but the added step of going to court takes additional time and costs more money.
(See this link for information on "judicial" foreclosure: http://www.nolo.com/legal-encyclopedia/how-foreclosure-works-30066.html

Related Real Estate Law Questions