Robyn Seymour - What do you know about Property Foreclosures?

If someone unable to pay their mortgage payment after the due date then foreclosure process happens. As soon as the foreclosure process happens, the borrower loses their right to redeem the property that they borrowed money for. They lose the right to redeem the property because the property was security for loan. A common misbelieve is that the bank gives out the mortgage but in truth they only loan money and use the mortgage for loan security.

There are many reasons why people go into foreclosure. It could be a layoff or failed business venture. Whatever the financial problems, two things are usually true. One is that a person who goes into foreclosure does not want to lose their home and have their credit ruined. The second is that lenders do not want to own foreclosed homes. Lenders are in the business of lending money, not owning homes. The first stage of foreclosure is known as Lis Pendens. During this period of time, gentle payment reminders are sent by the lender to the borrower’s residence. If the borrower does not pay the amount owed, the lender's attorney files public records with the local county clerk's office and a foreclosure auction is scheduled.

If no one buys the home at the foreclosure auction, the lender takes over primary ownership of the house. In post foreclosure, lenders usually hire a national realtor to sell the home. The home is then provided for an auction to allow the real estate investors for bidding if the home is not sold within the allotted time.