What is foreclosure and how does it happen? Does the homeowner have a chance to get back their home? Can I buy a home in
foreclosure? Whether you're an investor, homeowner or in the market to buy, foreclosure process is important to learn about
in today's real estate world.
Foreclosure is the final step in a… Read More »
process of a lender trying to recoup their money from a borrower who has defaulted on
their loan. The bank either sells or takes back the home resulting in a foreclosure auction or bank foreclosure.
The first step on the road to foreclosure is the NOD or notice of default. After this there is a reinstatement period in
the foreclosure process before the house is put up for auction. If the defaulted loan isn't taken care of in this time
period, a notice of sale is sent to the owner, posted on the property and in the newspaper and the home is put up for auction.
In this turning point in the foreclosure process, the home is either purchased by the highest bidder, meeting the reserve
set by the bank to recoup their loan balance, interest and additional fees or the home is repossessed by the bank. At this
point, the home becomes, bank or real estate owned(REO) property and can be purchased directly from them, often with a clean title. Show Less »
Going Once, Going Twice...Buying a Home in Trouble
Part of the foreclosure process is the owner and/or the bank trying to get their money's worth out of the home and get it off their hands. This can happen via a short sale, or home auction before it gets to the point where it's bought back by the bank, and at that end point in the foreclosure process, it's an REO or real estate owned property.
Before you get into trouble on your home, or get into buying foreclosure homes for your own, be sure to understand the trickly foreclosure process. Foreclosure process also differs slightly by state so be sure to check the foreclosure laws by state to understand your state's foreclosure process fully.