The Judgment In Foreclosure Process
A divorce decree in foreclosure is a court order that provides notice of the intent to terminate the marriage and authorizes either party to sell or transfer the property. It can be issued by a state or county court and can be entered into the court's official records for a period of one year from the date of service. A divorce decree in foreclosure does not prevent a husband or wife from remarrying within that period, nor does it prevent a former husband or wife from retaining the title to any property they jointly own after the date of the divorce. The decree does nothing to prevent the creditors from collecting on a loan or claim the property.
Foreclosure occurs in different states and has different definitions. In Texas, "foreclosure" means a sale at auction of the property by the trustee who assumes the debt. In Massachusetts, "foreclosure" means that the trustee sells the property under his supervision and orders that the proceeds from the sale be held in trust for the benefit of the judgment debtor. In Florida foreclosure occurs when the trustee sells the property with an anticipation of sale for the benefit of the debtor only if the debtor does not pay his or her debts as scheduled.
There are two types of foreclosure: judicial and non-judicial. A judicial foreclosure takes effect immediately upon the filing of the complaint, and the trustee issues the judgment debtor a certificate of default. An auction is held to sell the property at public auction. The proceeds of the sale are held in trust pending the final disposition of the bankruptcy case of the judgment debtor. If the debtor's bankruptcy case is still pending, the proceeds of the auction will revert to the creditor.
Non-judicial foreclosure is a process in which the trustee or other responsible third party may petition the court to issue an order setting a date for the sale of the property. The date set by the court is usually a number of months after the date of the last judgment. The property is sold at a public auction. The proceeds from the sale are kept by the trustee. This type of foreclosure takes longer to occur than the judicial process mentioned above.
If you are facing foreclosure, contact an experienced attorney who has experience representing people like you. A good attorney will know which processes apply to your situation. With experience, they will be able to advise you on what to do if you are served with a complaint for foreclosure. It is important to remember that the goal of the bank or creditor is not to take back the property but to get their money. Your attorney can advise you on how to deal with the bank and creditors and get your rights back so that you can avoid a potentially devastating foreclosure.
It is important to understand that the sale of the property does not resolve the validity of the judgment. A new hearing to determine the validity of the judgment must be held within a certain period of time after service of the divorce decree. There is a statute of limitations that may extend the time period for this review. For questions concerning your judgment in foreclosure, you should consult an attorney who has experience representing judgment debtors.