What is a Foreclosure?
This is the process by which a lender can recover the amount owed on a defaulted loan by taking possession of ( repossession) or selling a property securing the loan. This process begins when the owner of the property defaults on loan payments, usually a mortgage. The lender then files a public default notice and the process begins.
Options for resolving the debt…
- The debt is paid outright-
-The owner pays the debt off. The debt can now be reinstated during the pre –foreclosure
grace period.
-Alternatively, the house is sold to a third party to pay the debt and avoid
a blemish on the borrower’s credit record.
- The house is sold to a third party at public auction at the end of the pre-
foreclosure period.
- The lender takes ownership of the property either by buying it from the
owner in pre-foreclosure or when it goes to auction.
Purchasing a property in the foreclosure process is gaining in popularity.
If this type of purchase interests you, ask you Real Estate Agent for more information.
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