Foreclosure Education

First and foremost, foreclosure is a process.  It's the process your lender must legally undertake to enforce its right to force the sale of your home in order to collect the outstanding debt. Our housing counselors can help you navigate this process, advising and assisting you on which path is best for you and your family.

How did your lender get the right to foreclose? You gave it to the lender when you signed the mortgage or deed of trust for your home loan. A mortgage or deed of trust was one of the many documents you signed when you originally took out the loan to purchase your home. In this document, you gave to the lender a security interest in your house to guarantee repayment of the mortgage. Once you stop paying the mortgage, your house can be sold without your consent in order for the lender to recoup the amount they loaned to you.

Foreclosures typically take one of two major paths: judicial (in court) or non-judicial (out of court).  If your home loan is secured by a mortgage, chances are good you'll have a judicial foreclosure.  If your loan is secured by a deed of trust, you'll probably have a non-judicial foreclosure.  The foreclosure process in a particular state (and the laws that state's lobbyists have pushed through the state legislature) determines whether mortgages or deeds of trust are used for that particular state.

A judicial foreclosure often takes longer (much longer) than a non-judicial foreclosure.  A judicial foreclosure also gives you a “ready-made” opportunity to oppose the foreclosure and assures that your home won't be lost to foreclosure unless a judge signs off on it.

You're not alone!  Our experienced and caring housing counselors can thoroughly explain the process so that you are empowered with the knowledge to choose the best course.