Move N Places • Equal Opportunity Housing
Contact Info
You can reach me at (480) 390-7369 (Direct). You can also send email to PatrickHarvey@cox.net
Move N Places
202 W Main St #101
Mesa, AZ 85201
Foreclosure
In Lien Theory states (where property is secured by a trust deed rather than a mortgage), there are three parties involved. (In a mortgage it is between you and the bank only.) The three parties are you, the lender, and the trustee.This arrangement was created because when you have a mortgage, the bank has to go through a judicial proceeding to foreclose. This takes lots of time and involves the courts. To expedite the foreclosure process (a judicial foreclosure may take upwards of 6 months or a year), lenders started using trust deeds. In a trust deed, you pledge your property to the lender in return for them giving you a loan. However, the lender does not hold title to your property; bare legal title (the subject of legal and equitable title is for a longer discussion) is given to a third party, the trustee. The trustee has the power to sell your property if you default on the trust deed.
So when you become 90 days late (longer in some cases now), the bank will send the trustee a Notice of Default and the trustee schedules a trustee's sale. At this sale, bidders will bid for the property. The lender sets a price they will accept as the minimum bid. Because this process is not judicial (no courts involved), the actual foreclosure process can occur in as little as 90 days.
In a nutshell, whether it is a deed of trust or a mortgage, a foreclosure happens when you fail to pay your house payment long enough that the lender becomes upset and wants their money. The process is that your home is sold at an auction and the buyer must then evict you to take possession.