Foreclosure is the process by which the lender or lienholder obtains a court order to repossess real property after the owner has failed to comply with the agreement between the lender and borrower as stated in the mortgage or deed of trust. Proceedings can also be initiated due to overdue taxes, unpaid contractor bills or homeowner association assessments.
The possible outcomes to a foreclosure are:
- The borrower/owner can pay off the defaulted amount during the grace period designated by the state. This is referred to as pre-foreclosure.
- The borrower/owner can sell the property to a third party during the pre-foreclosure time frame.
- A third party can buy the home at public auction.
- The bank can take ownership of the property with the intention of selling the property after a court ordered termination of the borrower’s right of redemption. Properties reposed by the lender are known as bank owned or REO (Real Estate Owned by the Lender) properties.
The foreclosure process makes home ownership possible at a price that is lower than market value.
Having problems making your mortgage payment? We list multiple foreclosures and work with various banks to help you through this process. Please call us for assistance or click here for resources available if you are struggling to pay your mortgage.