Foreclosure Steps

For several years, many people are in conflict with loan companies because they cannot pay them in due time. It happens because loans values are high; therefore, most of them get to foreclosure. When there is no other solution, your property will be sold. A lawyer will let you know the foreclosure procedure.

First, you get a final notice related to the foreclosure decision. If you do not reply to this letter, after a period of fifteen days, it will come again.

Dialogue is always possible, but if you make no effort to rectify the situation, the lawyer addresses to the judge asked to apply for the appointment with a notary who will be responsible for conducting the public sale of the property, sharing prices between different creditors. The judge will try a final conciliation and, if it fails, a notary must be appointed.

At this moment, the notary has the obligation to continue the mission entrusted to him or her. The notary will draw up specifications, i.e., a paper bearing all the conditions for public sale of foreclosed homes. He or she shows the date and the place of sale, and all the money that the purchaser is willing to offer. The sale must take place within six months from the date of the appointment of notaries.

The foreclosure notice will come again. In the absence of opposition, the notary public announces the property for sale on the day fixed and announced in the press and posters. Until then, the procedure can stop and with the consent of all the creditors, the sale will take place even if the price is lower than your debts. Once the sale takes place, it is too late to avoid foreclosure!

The sale will only be finalized after a period of fifteen days, if there is no bidding. The buyer of the property should pay the price to the notary and the costs of the foreclosure. The notary will then share the price between various creditors, according to priorities. If the sale price is insufficient, some creditors may recover nothing. The purchaser will not be required to repay your remnant debts, despite selling the property. If the price is higher than the debt, you can recover the balance.

In the case of a mortgage for which the borrower fails to meet its commitments, the procedure is the same. However, in this case, at the beginning of the procedure, a trial can force the debtor pay a sum to the creditor. In some cases and under specific conditions, it will be possible to ask the private sale of the foreclosed property.

This entire procedure is extremely expensive and time consuming. Creditors may be reluctant to initiate it because they do not know how and when they recover what they deserve. For the debtor, it is catastrophic because ultimately he will bear all the costs. Prior to embark on this adventure, he should think about what will happen to him. However, in the case of a foreclosure, not everyone is always willing to talk!

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