There are a few types of foreclosure. The better known types of foreclosure are judicial sale foreclosure and power of sale foreclosure. The laws governing the foreclosure process differ from state to state. The timeline for foreclosure is slightly different for each type of foreclosure. When and how a mortgage holder can begin the the process of foreclosing are outlined in the mortgage documents. Knowing how foreclosure works will help homeowners deal with foreclosure and get the appropriate foreclosures help in a timely manner. Often, the mortgage holder begins the foreclosure process once the homeowner misses a few mortgage payments.

Judicial Foreclosure

The most common foreclosure type is no doubt the Judicial foreclosure. It is available in every state and many states do not have other types of foreclosure. The law governing the judicial foreclosure requires the mortgage company to seek the supervision of a court for the sale of a foreclosed property. The involvement of the court slows down the foreclosure process so the homeowner will have some time to come up with ways to avoid foreclosure and seek the right foreclosure help.

Power of Sale Foreclosure

If your mortgage document or deed of trust contains the power of sale clause then your state allows the power of sale foreclosure. The power of sale clause makes it legal for the mortgage holder to foreclose and sell your house without the court being involved. The process of foreclosure under the Power of Sale rule is much faster than the Judicial foreclosure process. This law makes it easier for the mortgage holder to foreclose on homeowners in trouble.

The foreclosure sale proceeds go to the mortgage holders first, and then to other lien holders. Then if there is anything left of the proceeds, the homeowner usually gets what is left. The problem is that, in this bad real estate market, the proceeds are usually much less than the amount that owed to the mortgage companies so, not only the homeowner may not get any of the proceeds, he or she can even be pursued by the mortgage holder for the remaining amount owed.