Foreclosure Process

• If the power of sale clause specifies the time, place and terms of a foreclosure sale, these must be followed, according to the district's foreclosure law. If it does not, the trustee has to go to court to establish the terms of sale. However, the law does require that both the borrower and the mayor's office be given notice 30 before sale. This notice must be given in addition to any notice required by the deed of trust or the court. There is no advertising requirement, but if there is none in the deed of trust, custom dictates that courts require advertisement five times every other day before any sale.
  
  

Deficiency Judgment

• If the sale price of the property is less than the balance owed on the loan, the lender can sue the borrower for the deficiency.
  
  

Redemption

• There is no right to redemption after the property is sold. However, a borrower can pay what he owes and reinstate the loan up to five days before bidding on the property begins. This right can only be exercised by a borrower once every two years.