If the mortgagor (the borrower) defaults (fails to make the monthly mortgage payments), the mortgagee (the lender) may reach the land to satisfy the debt. In some states this is accomplished with a a judicial foreclosure. This is a lawsuit in which the mortgagor is evicted and the property is sold under the supervision of a government official, such as a sheriff. A judicial foreclosure can start 120 to 180 days following a default.
In some states a foreclosure is accomplished privately. If the mortgage is actually a deed of trust, a deed of trust allows the trustee to sell the property in a private sale when the borrower defaults. The private sale must occur in a commercially reasonable manner so as to bring the highest price possible. A private sale may occur as soon as 60 days following a default.
Can't Pay Mortgage
Your mother will be evicted if she continues to fail to pay the mortgage, the house will be auctioned or added as a real-estate-owned (REO) property in the multiple listing service. When the house is sold, the proceeds will be applied to the balance of the loan. Any surplus will be given to your mother. If the sale proceeds are less than the balance of the loan, then she will be liable for the deficiency balance. If your mother's home is worth more than the balance of the mortgage, then she should sell the property herself immediately.
Your mother has options to avoid foreclosure. Read the Bills.com resource Home Affordable Foreclosure Alternatives Program to learn about the options she has to resolve the mortgage with the mortgagee.
I hope this information helps you Find. Learn & Save.