What are the stages in a foreclosure?
There are actually three different stages and they are: • Pre-foreclosure: This is the first stage where the borrower/homeowner is given an opportunity to pay off the debt. They are given a grace period, which varies from state to state. • Auction: This is the next stage. If a homeowner is unable to pay off the debt within the grace period then the property will go into foreclosure and the lenders will put it up for a public auction. • Real-estate owned/REO: If a particular property was not sold at an auction, then the listing is sent back to the lender and it gets transformed into a real-estate owned property for sale or REO.
