1.Foreclosure by Sale:
The foreclosure by Sale is set by a judge; he or she sets the sale date. At the the sale date a Attorney appointed by the court; called the “committee for sale”, auctions off the property to the highest bidder. The committee is granted power by the court to carry out all aspects of the auction, this includes advertising in the newspapers as well as posting a sign on the property. A order that is issued by the court gives the committee the right to enter the property on the day of the sale; but the judge instructs the committee to only enter with the consent of the occupant. Once the auction is done the money from the auction first goes to pay for the costs in setting up the auction, then to the lender and any or all other liens on the property. Only then if there is any monies left does it go to you!

If you can pay the amount of the judgment as well as all costs and fees incurred by the auctioneer prior to the date of the sale, you can then prevent the auction; there by retaining your rights to the property! You can also pay your debt by either selling the property privately or by refinancing.

2.Strict Foreclosure:
With a strict foreclosure; the judge will set a series of “law days” for each person listed as a defendant. You will lose all rights to your property; after your law day! The law days can be assigned as soon as 3 weeks after the case goes to judgment, or can go as long as 9 months or longer. The decision is up to the judge that hears the case.

Up until your law day you may redeem the mortgage or debt, by paying what you owe the bank or the other party bringing the case against you. The due amount will include attorney's fees and court costs. To redeem your property can be done in a few ways; of course if you happen to have the money you may pay it! Other ways are for you to sell the property before foreclosure; also if you can find another lender that would refinance for you, that would be a option.

Of course if you are not able to do this by the law day; then the other people assigned to the other law days are given the chance to redeem the mortgage by paying off the debt. If another person named as a defendant redeems the mortgage, that person then gets legal title to the property. If no one redeems the property then the lender that is foreclosing on the property gets title to the property.