What happens with a notice of mortgage foreclosure sale?
Answer:The lender has to compose a notice of mortgage foreclosure sale and publish it in an authorized newspaper a certain period of time prior to the foreclosure auction. The time period between the announcement and the auction actually taking place will vary from state to state.
The notice of mortgage foreclosure sale will include the names of the creditor and debtor, as well as all the details regarding the date and the amount of the mortgage, the outstanding balance and the time allowed for reclaiming the property.
To reinstate the home mortgage, the debtor has to cover the balance mentioned on the notice of mortgage foreclosure sale plus any foreclosure related fees.
At the mortgage foreclosure auction, the highest bid wins. Usually, the highest bid is made by the mortgagee (lender) and covers the outstanding mortgage balance plus the additional mortgage foreclosure costs. If anyone bids higher, they have to pay cash. If surplus occurs, the remaining part is spread among subordinate liens as provided by the state law.
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