What are the ways in which the foreclosure process can end?
The foreclosure process can end in one of the following four ways: • The borrower/owner can reinstate the loan by paying off the default amount during the state law specific grace period. This period of time is also commonly referred to as pre-foreclosure. • The borrower/owner can decide to sell the property to a third party during the pre-foreclosure period; allowing the borrower/owner to pay off the loan and avoid having a foreclosure on their credit history. • A third party can buy the property at a public auction at the end of the pre-foreclosure period. • The lender can take ownership of the property, with the goal of turning the property around and selling it on the open market. The lender can obtain ownership of the property through a short sale foreclosure or by buying back the property at the public auction. Properties repossessed by the lender are also known as bank owned, or REO (Real Estate Owned by the lender) properties.
