What is a Foreclosure?
Foreclosure is a process that allows the bank or financial institution holding the mortgage of a house to recover the amount owed by the homeowner. This process gives the bank legal ownership of the property and allows them to recover the funds by selling or taking complete ownership of the home. Stages of a Foreclosure Pre-foreclosure: The foreclosure process begins long before an actual legal foreclosure is official. The process begins when a homeowner misses payments, usually three to six months, and is not able to financially repay the amount; this is referred to as defaulting on the home loan. When this happens, the bank or financial institution files a public default notice, called a Notice of Default or the legal term, Lis Pendens. Foreclosure: After the Notice of Default, a lender will mail a certified foreclosure letter, called the Notice of Sale, to the homeowner and make a public and legal notice of foreclosure with the County Recorder’s Office. Soon after, the court will is
A foreclosure is the legal process by which a mortgage property is seized due to default and then sold. A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property and depriving the mortgagor (borrower) of possession. Court action taken by a mortgagee when a borrower has defaulted. The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. A proceeding in or out of court, to extinguish all rights, title, and interest, of the owner(s) of property in order to sell the property to satisfy a lien against it. An enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the mortgage. The
A foreclosure is when a bank takes possession of a home from a defaulting borrower. Even though these homes are usually sold below market value, you are buying the home “as is”. The positive side to buying a foreclosure is that you are dealing directly with the bank and can expect a much quicker response time for negotiations than you would with a short sale. A short sale is when a home owner who is currently in default or could soon be in default tries to sell their home prior to the home going into foreclosure. The sales price is not sufficient to erase the current lien and, in a perfect world, the bank will accept the deficiency and release the lien in order to offer the new owner a clear title. Once an offer is made, the negotiations are made with the seller first, and then the bank that holds the mortgage reviews the terms of the contract. It may take upwards of 60 days to hear an initial response from the bank and they do not have to agree to accept the offer. One of the signific
A foreclosure is a legal process in which a bank or other secured creditor sells or repossesses a piece of real property because the owner has failed to make payments on their loan. There are three ways the foreclosure process can end: A. The borrower makes an arrangement with the lender to pay off the default amount to reinstate the loan. B The borrower sells the property during the pre-foreclosure period. If the borrower sells the property during this stage they will avoid having a defaulted loan on their credit history. C. If the property is not sold at auction or the lender purchases the property at auction the lender gains possession of the property.
