Start of the Process

The process of foreclosure starts when the mortgagee does not make the first payment. This payment becomes a debt which is needed to be paid to the mortgagee. Usually the mortgager extends the time for the payment in start. If the second payment is also not paid, then the mortgagee is requires to contact the mortgager to make the payments. He must have a direct contact with the mortgager. If the third payment also falls behind then typically the situation becomes a bit serious and the mortgagee is only left with the option of foreclosure.

Types

Generally there are two ways through which the mortgagee can access foreclosure.

• Through Law
• Through selling

Through law

First the mortgagee files a case against mortgager for the non-payment of the debt. After analyzing the court sends a letter to the mortgager in which it states the deadline for the payment of all the dues or the debt.  If the mortgager still fails to pay off the debt then the court allows the mortgagee to sell the mortgaged property or get hold over the amount of security.

Through Selling

In this process of foreclosure the mortgagee sends the documents or the written deed, which is written at the time of agreement of renting out the property to the mortgager. This deed includes all the term and conditions which need to be fulfilled for residing in that portion. In case if the requirements are not followed or fulfilled then by law, it is generally already mentioned on that written deed to get hold over the security in substitute of the debt which is not being paid.

So the mortgagee reminds him about the points in written deed and gives him the deadline to pay off all the previous debt. If the mortgager fails to do to, then the mortgagee is allowed to sell off the mortgaged property and get and claim the debt off or he can simply take off the security amount.

The process accompanied through law is usually followed because the other person cannot call for anything and secondly it is assured that everything that has been carried out is according to the terms and conditions of the law and judiciary. For both the processes it is necessary to inform the mortgager through notices in advance.

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