What are the different types of foreclosure homes that I could find?
Foreclosure properties have three stages: • Pre-foreclosures, when the lender starts the foreclosure proceedings. The borrower has the chance to pay the amount that is owed during this stage. One of the possible options includes selling the home before the lender repossesses it. • Auction. If the homeowner was unable to settle the debt while the property is in pre-foreclosure, the home is auctioned. • Bank foreclosure property – If the home does not sell at auction, the lender takes it back and then attempts to sell it to the public. *Note: Properties that previously had loans that were insured by Fannie Mae, HUD or backed by the VA (Department of Veteran Affairs) havean extra stage. The homes that fail to sell at the auctions are returned to the lenders, the government agency that guaranteed the loan repays the mortgagor and takes title of the property. These agencies then prepare to sell the home to the general public.
