Power Principles

We are almost finished with our list of 12 major business ideas that will change how you look at your business.  We wanted to wrap...

Is your E-Mail dragging you Down?

This weekend a close friend and I were training for an upcoming triathlon when my friend’s phone rang.  He talked for a moment then started...

What are you doing with your time?

During the recent Olympics I marveled at the physical and physiological strength of each of the athletes that competed.  A friend of mine often remarks...

How do you become a Black Penguin?

Do you ever feel like your business is just the same as everybody else?  Ever tried to distinguish yourself from your competitors?  Is your company the...


Are You Ready To Invest In Foreclosures?

During this economic downturn, the foreclosure market is booming, but knowing when to step in and make a deal is still the key to success. There are different kinds of foreclosures, and each has their own set of terms. Are you ready to invest in foreclosures? How much do you really know about foreclosure investing?

Definition of Foreclosures

“Foreclosure” is the legal process of a mortgage holder taking collateral for a promissory note in default. Although the process may vary from state to state, there are two types of foreclosures — judicial and non-judicial. Most states allow both types of proceedings, but it is common practice for states to use one or the other.

What is a Judicial Foreclosure?

A judicial foreclosure is a lawsuit that the lender (mortgage holder) brings against the borrower (mortgagor) to take the property. Like any lawsuit, it begins with a summons and a complaint served on the borrower. If the borrower does not answer the complaint, the lender will win the judgment by default. A designated person is then appointed by the court to provide the total amount of interest and attorney’s fees that must be paid by the borrower. The lender must advertise a notice of the sale in a local newspaper for 4-6 weeks. A public sale is conducted if the loan is not brought current. The sale is an auction-type where bids are made and the highest bidder gains ownership of the property. If the final bid amount does not cover the amount owned to the lender, the lender may be entitled to a judgment against the borrower for the remainder of the amount owed. In some states, the lender may not be able to take action against the borrower.