A lender may foreclose on the defaulting borrower's real property which secures the loan. There are two types of foreclosures available to a lender. A trustee's sale and a judicial foreclosure. Technically, a trustee's sale is not a foreclosure but the term has been used for both a trustee's sale as well as a judicial foreclosure.
For certain loans, a lender has no choice and must conduct a trustee's sale. With a trustee's sale, a lender cannot go after a deficiency judgement. A deficiency occurs when the current market value of the property is less than the loan on the property.
The lender may also be able to pursue 'guarantors' of the debt who have signed written guarantee agreements.
For certain loans, a lender has no choice and must conduct a trustee's sale. With a trustee's sale, a lender cannot go after a deficiency judgement. A deficiency occurs when the current market value of the property is less than the loan on the property.
The lender may also be able to pursue 'guarantors' of the debt who have signed written guarantee agreements.
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