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Richard A. Klass
Mortgage Foreclosure and
Lien Foreclosure Practice
Hand in hand with owning property (whether it be real estate, equipment, cooperative apartment or other personal property), there is the concept of owning the right to use that property as the owner sees fit. That right would include the ability of the owner to give a mortgage or lien to a lender as collateral for a loan.
Overview of terms: mortgage, liens and foreclosures.
Mortgage
A “Mortgage” is a form of legal instrument where the owner of real estate puts up the property as collateral or security for the loan. The Mortgage will be recorded with the clerk of the county in which the property is located so that the public may see it and have notice of it. Once the loan is satisfied or paid off, the lender will provide to the owner a Satisfaction of Mortgage, to prove that the loan has been repaid.
Liens
A “lien” may include a Mortgage, but it also encompasses all types of security interests granted in property, including Mechanic’s Liens (for improvements made to the property), Uniform Commercial Code (UCC) liens, Judgment liens (for money judgments granted against the owner of the property), and governmental liens (such as parking tickets or building department liens). Liens may be filed in different places depending on their nature, including the clerk of the county, court clerk, or governmental agency.
Foreclosure
When the owner of the property cannot satisfy the mortgage or lien, the “mortgagee” or the “lienor” will have the right to “foreclose” on the mortgage or lien. A foreclosure is the name of a proceeding in which the mortgagee or lienor seeks to sell the property at auction to the highest bidder and then cut-off or extinguish the rights of other parties in the property, including the owner, other mortgagees, and other lienors which may be junior or later in time.
Judgment of Foreclosure
The culmination of a foreclosure proceeding is the entry of a Judgment of Foreclosure and Sale. Once that Judgment is entered, the mortgagee has the right to sell the property at auction. In most instances, a public auction will be noticed by the mortgagee, and will be published in the newspaper and/or other media. After the auction is conducted, there may be surplus moneys left over after satisfying the Judgment amount, which will go to the owner of the property or other lienors who are next in line; or there may be a deficiency, where the amount for which the property was sold did not satisfy the Judgment amount and the mortgagee may seek entry of a money judgment for the balance due. Most of the time, the end result of a mortgage foreclosure is that the lender takes back the property or sells it to a third party in satisfaction of the mortgage and the matter is finally resolved.
The Firm's Foreclosure Practice
The law firm of Richard A. Klass has been handling foreclosure matters for two decades, representing both homeowners seeking protection from their mortgage lenders, and secured parties seeking to ensure that their property rights are enforced. Mr. Klass has fought to save clients’ houses and property from creditors. Mr. Klass has counseled clients regarding protecting their homes. If you are in foreclosure, or need to enforce your property rights, you need to contact Richard A. Klass, Your Court Street Lawyer, for a consultation!
If you have any questions concerning mortgage and/or lien foreclosures or believe you may have a case concerning Mortgage Foreclosure and/or Lien Foreclosure, please feel free to contact the law offices of Richard A. Klass, Esq. by phone or e-mail.
For information about Mr. Klass' practice in "Foreclosure Litigation and Assistance: Residential and Commercial Buildings," click here.
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