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Judicial foreclosure available: Yes
Non-Judicial foreclosure available: No
Preliminary Notices
Advertising Notice of the time and place of sale must be
advertised once a week for three consecutive weeks, with the last publication
no more than 14 and no less than 7 days before the foreclosure day.
Mailing
Notice must be sent to the defaulting borrower within
five days of the first ad.
Sale Procedures
Place
The sale must be at the courthouse, although the
district judge may order the sale on the premises or at another location.
Manner
The sale is by public auction to the highest bidder. The
sheriff will at once give the buyer at the foreclosure sale a certificate of
purchase. The certificate of purchase is all the buyer gets until the
borrower's redemption rights expire.
Confirmation
The foreclosure sale must be confirmed by the court
after the sale. The court has discretion to refuse to honor the sale and
require a minimum bid or force the crediting of the market value against what
was owed on the loan. Once confirmed, a sheriff's deed can be issued and it
will vest good and perfect title in the foreclosure buyer. However, the
court may specify as a condition of confirmation that the redemption period may
run first, which is 12 months unless reduced.
Special Procedures
A judgment can stay un-enforced up to five years, at
which point it becomes dormant, but is subject to revival for another two
years. Afterward the judgment is barred from enforcement and the court records
must reflect that fact.
Deficiency
A deficiency judgment may be obtained for the difference
between the foreclosure sale price and the amount due on the loan. Deficiencies
are common. However, the court may refuse to confirm a sale where the price is
not equal to the judgment, which helps prevent abusive deficiency
judgments.
Redemption
The borrower can redeem any real property sold at
foreclosure at any time up to 12 months from the date of sale by paying the
holder of the certificate of purchase the purchase price plus costs and
interest. If the judge finds the property is abandoned or not occupied in good
faith, then the redemption period is six months. Lien creditors must undertake
redemption within three months. The former borrower's redemption period may be
reduced if the lien is only one-third of the original indebtedness. The on year
goes down to six months. However, the court may conduct a hearing on market
value, and if the debt is one third of the court-perceived market value, then
12 month for redemption may be allowed before the court will confirm the
sale. |
