A Foreclosure is a lawsuit whereby a lender files suit on its mortgage in
order to be paid or to obtain title to the property. The lawsuit, if successful,
will foreclose the title and interest of the owner and others and result in a
sale on the courthouse steps or on an online auction.
When a borrower misses payments, the lender may file a complaint instituting
a foreclosure lawsuit. The complaint will normally be served upon
you in person by a process server. This service starts the clock running.
To avoid a default, a defendant must respond within 20 days after being
served. The suit will be litigated until a judgment is rendered and a courthouse
sale is ordered. Once the courthouse sale is ordered, the property
will be sold and the proceeds applied to pay down the debt owed to the
lender. If the proceeds are not sufficient, the lender may seek a deficiency
judgment against the defendant homeowner.