Equity of property and its impact on foreclosure procedures
Equity under laws means your real rights on a particular property. For example if the property in question is own jointly and you are a 60% share holder then your equity on the property in question is 60% and what ever worth it is. This can be calculated in another way when it is an exclusive property. In such case the equity is the difference between the real market value of the property minus the liabilities you have incurred on it. The calculation is made taking into consideration all the liens and mortgages made on the property and the costs incurred in the foreclosure process. In either case your primary aim would be to Stop foreclosure.
When you are left with the option to decide whether you should go for a foreclosure by sale or strict foreclosure, the determination of equity in the property becomes very important. If you have a lot of equity in the property, it is always better to go for the foreclosure by sale. Since the value of the property is greater than your debt, you are left with something because after auction and after meeting the claim of the mortgage company and expenses related to the foreclosure, the court will order the balance amount to go to the debtor.
However, when you have little or no equity in the property, strict foreclosure would be better for you. Since having no equity you get nothing from a sale there is no reason why you should go to the process of having an auction of your property that pays you nothing. You can find out more information on stop foreclosure blogs.