Thomas F. Miles, Attorney and Counselor at Law
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What is foreclosure?

In order to understand what options a San Diego resident may have to work through the foreclosure process, it is important that they first understand what a foreclosure actually is. This post will provide a very basic overview of what foreclosure means and the types of foreclosures Californians may face if their financial health threatens their ownership of their homes.

Although some people have enough money to buy their homes outright without having to secure financing, most people work hard to scrape together enough cash to make a down payment on a home and then finance the rest through a creditor. A home loan is called a mortgage and after a mortgage lender pays off the balance of the home for the home buyer it will generally hold a lien on the home buyer's property.

A lien allows a creditor to sell the property attached to the lien if the home buyer fails to make payments on the mortgage. Since it is the home that is the property that secures the mortgage lender's lien, a person can lose their home if they are unable to make payments on their mortgage and stay in good standing with their creditor or lender.

This is a foreclosure. It is the process of selling a home that is subject to a delinquent mortgage for the purposes of recouping the loaned money for the mortgage lender. A foreclosure may be a nonjudicial foreclosure which is compelled by terms agreed to in the home buyer and mortgage lender's agreement, or it may be a judicial foreclosure in which the lender secures a court order that allows them to sell the property subject to the lien.

A foreclosure can be heartbreaking and can uproot a family. Individuals facing foreclosure should know that they have options and attorneys who work in the foreclosure assistance field are available to help.

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Thomas F. Miles, Attorney and Counselor at Law
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