Commercial Law

You’re Still The Owner Even If Your Property Is Foreclosed

Understanding Property Foreclosure in South Australia

In South Australia, property foreclosure is a legal process by which a lender takes back ownership of a property from a borrower who has failed to meet their mortgage obligations. Despite a foreclosure, the borrower retains certain rights as the legal owner of the property.

What Happens After Foreclosure?

After a property is foreclosed, the lender typically takes possession of the property and may sell it to recover the outstanding debt. However, the former owner still has rights during and after the foreclosure process.

Key Points to Remember:

  • The borrower is still the legal owner of the property until it is sold at auction.
  • The borrower may have the right to redeem the property by paying off the outstanding debt before the sale.
  • Even after the property is sold, the borrower may be entitled to any surplus funds from the sale.

Frequently Asked Questions


Yes, you have the right to remain in the property until it is sold at auction or possession is formally taken by the lender.


Depending on the sale price of the property, you may still owe money to the lender if the sale does not cover the full amount of debt owed.


It may be possible to stop a foreclosure by negotiating with the lender, seeking legal advice, or exploring options like refinancing or loan modification.

Contact Wright Street Lawyers for Legal Assistance

If you are facing foreclosure or have questions about your rights as a property owner in South Australia, contact Wright Street Lawyers for client-focused legal advice and representation. Our experienced team specialises in family law, estate planning, probate, and criminal defense, and we are here to help you navigate the complexities of property law.

Call us at (08) 1234 5678 or email info@wrightstreetlawyers.com.au to schedule a consultation.