How the Forclosure Process Works (Every State)

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Mortgage and Lending with Loan Modification

How the Foreclosure Process Works.

 

•Types of Foreclosure: Judicial Foreclosure

•Types of Foreclosure: Non-Judicial Foreclosure

•Right of Redemption in the Case of Foreclosure

•Deficiency Judgments in Foreclosure Cases

 

The Foreclosure Process: Understanding Foreclosures

 

• Note: The following is a generalized breakdown of the foreclosure process. If you're interested in finding out about foreclosure laws in your state.

Check Foreclosure Procedure For Your State

Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY)

 

Foreclosure Defined

 

• A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold.

 

Loss Mitigation

 

• Loss mitigation is a set of programs set up by the government and lenders to assist homeowners threatened by foreclosure

 

Stages of Foreclosure

 

• The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure. After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder's Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off. If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale , and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder's Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period. The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee's deed to the property.

Foreclosure Auction

 

• At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender.

If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned . This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender.

When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. Priority of liens is determined by the date of recording. When you purchase a REO aka. Bank REO, you will typically receive the property with a clean title.

 

Note: Please leave a comment if you found this helpful.

More helpful Blogs:

How to Avoid Loan Modification / Loss Mitigation Scams

Loan Modification Scams Update

Loss Mitigation Services FAQ's

Investors Facing Foreclosure

Why won't my lender won't work with me?

How to Prevent Foreclosure on Your Investment Property

www.KeepYourProperty.info

 

Pre-Approval Loan Modification Application

 

Are you facing foreclosure, or heading in that direction due to an unexpected hardship? Give me a call and you can expect to get good honest information, advice or assistance. Or just fill out my pre-approval form and I will contact you regarding your options. Don't give up! You worked hard to own your home, now it's time to fight for it!

 

C Thompson

Case Manager

Call me: 407-219-8739

Email me: cthompson@keepyourproperty.info

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