Foreclosure Proceedure:

Foreclosure procedure involves the recovery of money due, the unpaid interest and associated costs by requiring the sale of a real property when a debtor fails to issue payment. Once there is a default for a predetermined amount of time, dependent up the state, the lender can serve a legal notice of default to the debtor informing them of the amount due and what is required to cure the default.

A foreclosure date is set if the delinquency and foreclosure costs are not recovered within the specified time period. The property may then be sold during a public sale.

The defaulting borrower has the opportunity to redeem the property up until the time of foreclosure by paying the required delinquencies and costs. When the property is sold, the creditor receives any amount that was due with the lender receiving any remaining funds.

A judicial foreclosure is involved if the lender brings a foreclosure suit against the defaulting borrower because of the delinquency and forces a sale. Several states that have mortgage systems or in deed of trust states use judicial foreclosures when it appears as if the amount due is greater than the real property's equity value and the lender wants to get a deficiency judgment for the amount due after the sale. It is not required in states that provide deficiency judgments without filing a lawsuit.

In Canada , many a times people erroneously refer to a "Power of Sale" as "Foreclosure" sale but these two are distinctly different.

Here below I have given definition of various terms that are commonly used in the foreclosure field.