Decree of foreclosure and sale
A decree of foreclosure and sale is a court declaration that indicates the outstanding amount for mortgage payments. Such a decree also includes the order to sell the property in question in order for the debt to be paid.
If a debtor is unable to make payments for an extended period of time, a mortgage lender can go to court in order to demand for the settlement of the debt. After a notice to the public has been posted for a sufficient period of time, a decree of foreclosure and sale can be issued. The property can then be auctioned off to the highest bidder so as to raise enough funds for the repayment of the debt.
Once a property has been foreclosed, it means that after undergoing a legal process and upon receipt of a court decision, a mortgagee is stripped of his right to the mortgaged property, particularly if this property serves as the security interest. A security interest is usually provided by a debtor to a lender before a loan is provided.
If the loan remains unpaid, the debtor may be granted the equitable right of redemption if the debt is repaid. If this does not happen, the ender can ask the courts to foreclose the equitable right of redemption. Similar processes are also applicable for other types of debts, such as unpaid taxes, association dues, and contractors’ bills, among others.
In order to avoid running into such problems, debtors may enlist the help of credit counselors. They are equipped with information necessary to give sound professional advice. Credit counselors may also take charge of negotiating with lenders for manageable debt restructuring schemes, as well as help debtors come up with plans to avoid more credit issues in the future.