Real Estate Foreclosure
Foreclosure originally starts off with a payment default made by the lender. It pertains to a legal process allowing a lender to take back the possession on the propert on default. If payments have been ignored continuously up to half a year then the lender files what is so called Default Notice.
The lender notifies the borrower up to 5 days to start a reinstatement period. The state will lay down a repayment schedule and repayment sum for the borrower to halt the process of foreclosure. This is known as the pre-foreclosure period.
If the loan defaulted is not put right, a state period for the foreclosure is firmed up. A Notice of Sale will be received by the borrower. This Notice will also be transmitted to the County Recorder's Office where the property is located. It will also be advertised in the print media. The property is awarded during this period to the highest bidder. A corresponding cash deposit will have to be made immediately. The bidder will then obtain the trustee's deed. This allows the borrower to pay the loan on default and ensure that the credit report is free from loan default statement.
Sometimes the mortgage lender himself will take ownership. This may be carried out through a binding agreement with the borrower in the pre-foreclosure date. In general the lender will choose to deal the property and salvage the loan. The lender will render the essential maintenance the property may require.
The foreclosing lender schedules the auction and an opening bid. This is equivalent to the borrower's loan balance which is outstanding, accrued interest, attorney fees and any miscellaneous fees involved. If the highest bid is less than the opening bid, the legal officer will buy the property on behalf of the lender. If the opening bid is not duly completed, the property is marked as real Estate Owned.
The lender notifies the borrower up to 5 days to start a reinstatement period. The state will lay down a repayment schedule and repayment sum for the borrower to halt the process of foreclosure. This is known as the pre-foreclosure period.
If the loan defaulted is not put right, a state period for the foreclosure is firmed up. A Notice of Sale will be received by the borrower. This Notice will also be transmitted to the County Recorder's Office where the property is located. It will also be advertised in the print media. The property is awarded during this period to the highest bidder. A corresponding cash deposit will have to be made immediately. The bidder will then obtain the trustee's deed. This allows the borrower to pay the loan on default and ensure that the credit report is free from loan default statement.
Sometimes the mortgage lender himself will take ownership. This may be carried out through a binding agreement with the borrower in the pre-foreclosure date. In general the lender will choose to deal the property and salvage the loan. The lender will render the essential maintenance the property may require.
The foreclosing lender schedules the auction and an opening bid. This is equivalent to the borrower's loan balance which is outstanding, accrued interest, attorney fees and any miscellaneous fees involved. If the highest bid is less than the opening bid, the legal officer will buy the property on behalf of the lender. If the opening bid is not duly completed, the property is marked as real Estate Owned.
About the Author:
Jason Myers is a professional writer and he writes as a hobby about real estate investing. He's also interested in invest in real estate.