What You Need to Know About Foreclosure | ||
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Foreclosure is a legal process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property securing the loan.
Yet, seven out of every 10 homeowners who lose their homes to foreclosure don’t seek intervention, which means they never list the property or try for a short sale.
If you or someone you know are behind on mortgage payments, contact us, we can help.
Foreclosure is a process, not a thing.
People often misuse the term "foreclosure." Foreclosure is a series of events, not a state of being. Lenders don't foreclose on homeowners; they foreclosure on property.
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The foreclosure process has four phases.
The terms and length of each phase vary by state. Homeowners: Your rights and options vary depending on the stage your home is in and the state you live in. Know what laws apply to you. Buyers: The stage and state will determine the strategy you use.
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There are still options once you get a notice of default.
If you've missed more than three mortgage payments, you still have some alternatives for stopping the foreclosure process. More Information.
A short sale is better than going through foreclosure.
Lenders don't typically forgive mortgages, but in a market with lots of inventory, they would rather see the house sold for less than the mortgage, than deal with trying to sell it themselves. More Information.
You can sell your home immediately when foreclosure is looming.
Even if you live in a tough market, being aggressive and keeping your home in good condition can help you get a speedy sale. More Information.
Foreclosure has legal, tax and credit consequences.
Foreclosure will heavily impact your ability to borrow money in the future, so make sure you've exhausted all other options first. More Information.
Buying a foreclosure property doesn't always mean you'll get a bargain.
Finding a move in ready property in the foreclosure market is rare. Often, the home will need some renovation from cosmetic to structural repairs. Crunch the numbers first to make sure you really are getting a deal. More Information.
Feel free to give us a call with your questions about foreclosures or send us an email.
Next Foreclosure Article: Foreclosure Defined
