Home Rent to Own | Power of Sale/Foreclosure | Credit Management Have You Been Declined For Home Financing Or Facin | Page 11

WHAT DOES POWER OF SALE OR
FORECLOSURE MEAN?
• Judicial foreclosure. This is a foreclosure in which the lender uses the
courts to make a judgement to sell the deeds to a home or to reap the
balance of the mortgage and other bills. These are typically slower than
other foreclosures and can take up to half a year to go through all the
legalities.
• Friendly foreclosure. A friendly foreclosure is another phrase for deed in
lieu of foreclosure. This means property is willingly given back to the
lender which actually eradicates any need for a foreclosure (this is why it
is referred to as friendly).
• In-Substance foreclosure. This is when the bank has already repossessed
the property in question despite the fact that no prior formalities
regarding the foreclosure have taken place. This could actually possibly
happen after a friendly foreclosure wherein the tenant grants the
property back to the lender to fulfil any outstanding mortgage finance.
• Foreclosure. Finally, the most well practiced foreclosure is wherein the
lender is forced to take legal action against the tenant as they are not
paying their bills on time, or even at all.