What is Foreclosure?
Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways:
· The borrower/owner reinstates the loan by paying off the default amount during a grace period determined by state law. This grace period is also known as pre-foreclosure.
· The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
· A third party buys the property at a public auction at the end of the pre-foreclosure period.
· The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure, via a short sale foreclosure or by buying back the property at the public auction. Properties repossessed by the lender are also known as bank owned or REO properties (Real Estate Owned by the lender).
Buying a home is one of the most important financial decisions a person can make in his or her lifetime. Unfortunately, most people give little thought to finding the real estate agent best suited for them.
Contact Steven today for a complete email listing of all foreclosure properties available. He is ready, willing and able to assist you with your real estate needs. (352) 650-7106