The usual remedy is in "foreclosure by action at law." A legal action is commenced in which the owner of the property and the maker of the bond and all persons who have any interest in the property subordinate to the mortgagee, are made parties defendant. Of course prior lienors should not be made parties; their claims cannot be affected. At the time of commencing the action, a notice of the action should be filed in the office of the clerk of the County in which the property is located. This "notice of pendency" or "Lis Pendens" as it is often erroneously termed, is a warning to everyone that the action has been started and that the defendants' rights are being attacked. Anyone acquiring the rights of any defendant thereafter assumes them with presumed knowledge of the action.

The complaint describes the bond and mortgage, states that the interests of the defendants are subordinate to the mortgagee, that a default has occurred, that a certain sum and interest is due the mortgagee, and asks for a judgment directing the sale of the property free of the interests of all the defendants; that the mortgagee be paid his claim and expenses from the proceeds of the sale; and if the sale realize not enough for that purpose, that a judgment for deficiency be given against the maker of the bond.

A copy of the summons and complaint must be served on all the defendants. They are given a certain time in which to formally set up any claim they may have contrary to the allegations of the mortgagee's complaint. Should any of the defendants make answer to the complaint, the issue must be tried out.

If no answer is made, or if the issue raised by answer has been found in favor of the mortgagee, he proceeds to judgment. The amount due him is ascertained and a formal judgment entered in his favor directing the sale of the property by a referee or master designated or by the sheriff. All defendants who have appeared in the action are given notice of the sale, which must also be advertised as the law requires. Any person may bid at the sale which is held at public auction in a public place. If the property be a plot consisting of more than one lot, and there be no clause in the mortgage permitting the sale in one parcel, each lot must be offered for sale separately.

Upon the sale the property may or may not bring enough to pay the mortgagee's expenses and his claim. He should protect himself by seeing to it that either the bid of an outsider is sufficient to cover him or else that he is the highest bidder. In this way, if the property does not bring enough to satisfy his claim he gets the property, while if more than enough is realized he does not care what becomes of it. The amount bid is paid to the officer conducting the sale, who first pays the expenses of sale, then the expenses of the action. After he has done this he pays the mortgagee's claim or as much as the balance will pay. If he has more than sufficient to satisfy the mortgagee's claim, he retains the surplus and deposits it in the custody of the Court.

He then files a report of his proceedings with the Court. If his report shows that he did not realize sufficient to pay the mortgagee's claim, he specifies the amount of the deficiency, and the mortgagee may enter a judgment against the maker of the bond in that amount. Should there be a surplus the referee must specify its amount. Any person having a valid claim against the property, which was cut off in the foreclosure, may commence a "surplus money proceeding" in which the rights and order of priority of all claimants is ascertained and the surplus divided, as far as it will go, to those entitled, in order of their priority.

The purchaser at the sale upon paying the amount of his bid receives a deed of the property from the officer who conducted the sale. This deed entitles him to possession of the property, and he may have the aid of the court in removing from possession any one who was made a party to the action. It is for this reason that all tenants and persons in possession of the mortgaged property are made defendants, even though they have no leases or any recorded claim to the property.