Real Estate Foreclosures One of the most daunting and nerve-wracking prospects that a human being can face is foreclosure. No one, in today’s generation, wants to lose their home. Losing a home can hamper not only your life but can also potentially have a negative impact on your credit score. There will be times when you think that foreclosure is inevitable, so you should not break down with three or more mortgages. It is, in fact, proven that the situation can be salvaged.
In addition, there are high chances that you will fall behind on paying your debts due to several financial situations, including job loss, divorce, or illness. However, there is nothing to panic about. If you know every kind of detail, then you can definitely get rid of the foreclosure.
In this article, you can find all the detailed explanations of the real estate foreclosure and can also find information on how you can stop the same.
What is Real Estate Foreclosure?
Real Estate Foreclosure is a situation that occurs when the owner of a real estate fails to pay the debts and dues, including the mortgage payment. Also, these can occur if the mortgage or lender investor must repossess and sell their homes accordingly. Apart from these, the Real Estate Foreclosure can also take place if the owner failed to pay their taxes and other associated fees of the home.
Further, three important definitions ofReal Estate Foreclosure are provided so that you can have a clear knowledge.
- Foreclosure Homes or REO- When the bank or the lender seizes a property after performing the foreclosure process then it is known as the Real-Estate owned property or the Foreclosure Homes.
- Foreclosure- This is further the process where the unpaid property is deteriorated by the mortgage investor or the lender.
- Home in Foreclosure- These are particularly the properties that are undergoing the foreclosure process.
Normally, the buyers are interested in the Foreclosure Homes or REO at a huge level as they can get a huge amount of profit from these houses. Also, these are available at a low price when compared to Non-foreclosure homes.
Types of Real Estate Foreclosure
Well, Real Estate Foreclosure can be divided into two types that include the following:
- Judicial– A judicial foreclosure process is what occurs inside the courtroom with the surveillance of the supreme authorities. Also in this type of foreclosure, the owner is allowed to perform a contest.
- Non-Judicial– The non Judicial Foreclosure however does not involve the court preceding and also this process involves stages that might differ from state to state. The stages are further listed below:
- Missed Payments
This is the very first stage of getting into a foreclosure. At this time, the owner generally misses the taxes and then the lender notices it and comes to collect them.
- Public Notice
This is the second very stage where the owner will receive short notice of clearing all his/her debts. However, after 3-6 mounts of tax missing his step might occur. This public notice is a name commonly known as the Notice of Default.
Once the lender receives all the evidence then arrives at the 3rd stage that includes the foreclosure. This is the ultimate warning and the owner also gets a minimum time of 90 days to get back his/ her property.
Some of the few options o avoid this process includes the:
- Sell the property as you can further use the equity to completely pay off the loan.
- Pay the outstanding balance and clear all the dues.
- Auction- This is the fourth stage, where the bank sizes the property and further paces it for auction so that others can buy the property and can bank can clear the debts.
- Post Foreclosure- If the home is sell in the auction the X owner should leave the house with all his belongings.
This can be highly beneficial for new investors as the rate of real estate foreclosures is very low. However, the process of foreclosure can be avoided with several means. So, if you really want to save yourself from foreclosure or want to invest in the same,then you can contact the best foreclosure agency, Foreclosure Daily. Here you can avail of guidance from the best and most experienced workers.