The foreclosure procedure differs from one state to another. The legitimate process that is followed by the banks and mortgage lenders is known as the foreclosure process. This procedure is followed when the banks and the lenders repossess the property of the homeowners that are unable to make the payment for the mortgage loan. While in some states, the judicial procedure is followed for the foreclosure process. In other cases, a non-judicial process is used for the foreclosure of the homes.
Whichever method is used for the foreclosure process, it can be a tough time for the homeowner who is past due on the mortgage loans. Depending on which state the homeowner stays, the process can takes a few weeks or as long as 6 months before the bank or the mortgage lender takes back the property. If the homeowners want to avoid the foreclosure, then they should meet the lenders at the earliest. The meeting can also be called by the bank to seek alternative options. If the homeowner can’t make the arrangements for the payment of the overdue loan or is unable to qualify for alternate options, then the foreclosure will take place.
In many cases the lenders also give forbearance during which the homeowner would need to pay lowered mortgage payments or could suspend the payments for a temporary time. Once the homeowner is able to get the funding, then they can start making the usual mortgage payments along with the overdue payments.
One of the ways in which foreclosure is done is through the public foreclosure auction. Homes that are to be foreclosed are listed at the auction. The highest bidder that can make the payment is the buyer of the property. The previous homeowner has only a few days or vacates the property. In some states, the bank or the mortgage lender can still sue the previous homeowner for insufficiency. Usually this isn’t done as the banks don’t have the actual information on the homeowner after they have left the property.
In cases, where the homes aren’t sold off at the public auctions, they return to the banks and are known as REO or real estate owned properties. These become the property of the banks and the mortgage lenders. They are then sold just like any other property after they get listed by the real estate agents. All foreclosed homes are known as distressed properties. The homeowners are in financial distress and this makes them incapable of making payments on their mortgage loans.
Homes can also be purchased prior to foreclosure by investors. The stage before foreclosure is known as pre foreclosure. In this case, investors can purchase the property through short sale. Usually the buyer will pay the mortgage lender a lower value than the actual value of the home. In return, the buyer gets a good property and the homeowner will vacate the property and get a fully paid up mortgage loan status.
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ForeclosureDataOnline.com has a huge database of foreclosure listings for sale in areas like Newark, Buffalo, Pittsburgh and in the whole country. It also provides news about the Real Estate market and anything related to the foreclosure crisis.