Almost everyone has a mortgage or trust deed that secures a loan or loans by encumbering real property. Our attorneys are experienced in drafting promissory notes, mortgages, and trust deeds that protect the interests of the seller (in the case of a seller financed transaction) and lenders. If a debtor is unable to pay, the proper documentation will allow recovery of the collateral. Our lawyers are also experienced in judicial foreclosures and non-judicial foreclosures. We help our clients select which of the two options will be best, and then pursue the option which will best satisfy our client’s needs.
A judicial foreclosure involves a lawsuit seeking to foreclose the mortgage or trust deed. After a Judgment and Decree of Foreclosure is entered, a sheriff’s sale of the property is scheduled. After the sale, the debtor retains the right to redeem the property by paying the purchase price plus interest, etc. The redemption period varies depending on the size of the parcel.
A non-judicial foreclosure is typically about a five month process where specific notices are delivered, posted, mailed, and published in the newspaper. At the end of the process, the trustee, usually a lawyer or title company, sells the property to the highest bidder. The trustee’s sale is absolute and usually cannot be set aside. There is no right of redemption after the trustee’s sale.