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The concept of "foreclosure" is often misunderstood and consequently feared. Understanding the process of foreclosure maximizes your ability to take action to improve your situation! If you have any questions or would like a free consultation, please contact us.
What Is Foreclosure?
Foreclosure is the legal proceeding by which a mortgage lender sells or repossesses property to satisfy a lien on the property when the owner has stopped making payments on the mortgage.The foreclosure process is a series of events that begins when a homeowner stops making mortgage payments; usually because of a life crisis which impacted their income or because their loan payments increased beyond their ability to pay them. The process ends when the mortgage holder sells the home at auction or takes the home back at the auction.
For Homeowners:
The foreclosure process starts when you are at least 90 days behind on your mortgage payment. Then a series of notices you will get in the mail and/or posted on your front door over a 4-6 month period of time telling you that you have two options: either bring your past due mortgage current or your home will be sold and you will have to move out. At the end of these notices is usually an auction, where the lender sells your home on the steps of the county courthouse or simply takes ownership of it and you move out. Your options, rights and responsibilities change depending on where in the foreclosure process your home is.More Information.
For Homebuyers:
The foreclosure process is a series of phases of "distressed" property ownership. During your house hunt, you will run into properties whose ownership status is the various steps of foreclosure. Each step presents a different set of considerations, each affecting how desirable (or not) buying a property might be to you.More Information.
Feel free to give us a call with your questions about foreclosures or send us an email.
Next Foreclosure Article: The Foreclosure Process
