A judicial sale foreclosure is the sale of a mortgaged home or property under a court’s supervision. These are typically ordered in cases where debts cannot be resolved, or if the debtor is so poor that he or she cannot afford continued mortgage payments. The proceeds of a judicial foreclosure are first put toward the original mortgage, and secondly toward other lien holders.
A Judicial Sale’s Necessary Parties
An important part of the foreclosure process is keeping all parties involved. In a judicial Foreclosure in Fairfield OH, parties are divided into two categories: proper and necessary parties. A necessary party is any that must be included in the process, and necessary parties are those acquiring an interest after the first mortgage. The entity bringing the suit is required to name these parties.
A party acquiring an easement, lease or lien after execution of the mortgage is also considered a necessary party. For instance, party A takes a mortgage from party B, and subsequently decides to take a second mortgage from a third party. Since that third party acquired interest after the first mortgage, they must be listed in the foreclosure suit.
The second party category in a judicial sale is the proper party, which is any obtaining an interest before the execution of the mortgage. Proper parties are those that may be useful during the process, but are not an essential part of the case. Their participation is voluntary in nature, and they cannot be named without consent, unless ordered by a judge.
Some judicial sales do not pay the entire outstanding amount. In these situations, the lender can file a deficiency judgment to recover the missing funds. For instance, if a lender only receives $10,000 on a $15,000 mortgage, they may sue the borrower for the other $5000. These judgments are not allowed in every area, and can be modified per “fair value” laws. Here, the lender can only recover an amount based on the property’s fair value at sale time.
Hiring a Foreclosure Attorney for a Judicial Sale
If you are named in a judicial sale, or you’re facing a Foreclosure in Fairfield OH, you should contact a foreclosure attorney. R. Dean Snyder Attorney can help you gather the necessary documents and protect your legal rights, and he or she can represent you in court if necessary.