Mortgage Foreclosure Process - The Basics.

The lock process is not very difficult to understand. There are several steps in which the homeowner has the opportunity to bring the loan in process and avoid foreclosure.

Generally, the mortgage foreclosure process begins when an owner is unable to pay the principal amount and / or interest on his loan. The banks seize the house by seizing it and then selling it.
They may opt for a short sale, which is an agreement with the landlord as part of a pre-foreclosure process. Another option is that the lender buys the property at an auction. In banking jargon, when a lender repossesses a property, it is called a bank or REO (real estate property).

  Stages of the Mortgage Foreclosure Process:

  • Notice of Default
  • Notice of Sale

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    Notice of Sale
  • Foreclosure Trustee Sale
  • Foreclosure Auction 
Notice of Default:
 When a lender issues an official default notice, he officially tells the landlord that he is facing foreclosure. This usually happens after 3 to 6 months of missed mortgage payments. A notice of the notice is filed with the county registrar.

  Notice of Sale:

Official sale date is assigned if the loan is not updated within 90 days. When this happens, a notice of sale will be posted on your property in a very public way. As with the Notice of Default, the Notice of Sale is also filed with the County Registrar as a standing document. And to make it a truly public affair, the notice of sale is published in the local newspaper for three weeks.
 
 Foreclosure Trustee Sale:
 The time and place of the auction are indicated in the notice of sale. As a general rule, the auction takes place on the steps of the county courthouse and the property is sold to the highest bidder. The offer must be paid in cash, but not necessarily in full at the time of sale. A deposit is made and the following amount must be paid within 24 hours. When the payment has been made in full and in cash, the winner receives the trustee's act relating to the property.

  Foreclosure Auction:

At the auction, the lender responsible for foreclosure places an opening bid amount on the property. This amount generally corresponds to the sum of the amount due on the property, interest accrued on the loan and any legal fees or overpayments. Real estate investors may be reluctant to buy a property at a reduced price, but they are preparing for a rude awakening. The opening offer is just a starting point. If the bids do not exceed the opening amount, the lender will likely purchase the property itself.

There may be a long list of appropriate and public relations-ready answers, but in my opinion, it really depends on their collective ego. Why should they allow someone, especially a real estate investor, to make a good deal for a home after all the trouble they've gone through. The lender had to deal with the missed payments, the mortgage foreclosure process, the money lost and the difficulties of selling the house. They prefer to keep the house, wait for the market to rebound and make a profit!