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:
1.. The borrower/owner reinstates the loan by paying off the default
amount to during a grace period determined by state law. This grace period
is also known as pre-foreclosure.
2.. 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.
3.. A third party buys the property at a public auction at the end of
the
pre-foreclosure period.
4.. 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 or by buying
back the property at the public auction. These are also known as
bank-owned
or REO Properties (Real Estate Owned by the lender).
To find a list of available seized homes please visit:
http://www.dailyextraincome.com/seized-real-estate.html
Cherell Pollard is a Web Entrepreneur with over 9 years experience.
