What is Involved in a Foreclosure?
Posted on February 22, 2010
Filed Under foreclosure investment property |
Almost a third of all property that is now on sale is owned by banks due to the rise in foreclosures and repossessions. Due to this continuation house prices are being pushed down and driving an expansion in this niche market. In the 2nd quarter of 2008 alone around 740,000 US homes entered into foreclosure. The number of US foreclosures has almost doubled over the years, especially due to the current economic situation.
The wave of foreclosures that has been and is continuing to sweep through the US comes in the wake of the sub-prime mortgage lending crisis. These issues could be the factors that end up destabilizing the US housing market and may also lead to further turmoil in financial institutions.
The biggest reason that people end up having to face a foreclosure is due to falling behind or failing to pay their monthly mortgage repayments. There are of course several reasons as to why this happens such as being laid off work or being fired, suffering an inability to continue working due to medical conditions, having excessive debt and mounting bill obligations and divorce as well as having a job transfer, which takes you to work in another state. Whatever the reason the consequences are sadly severe but now more than ever is the time to take action.
The concept of a foreclosure refers to a procedure that allows a lender to recover the amount that is owned to them on a defaulted loan by selling or taking ownership, which is known as repossession, of the property. So just how does the foreclosure process start? Well the way it starts is generally the same for most people. If a borrower/owner defaults on loan payments, which are generally mortgage payments the lender will then file a public default notice, which is known as a Notice of Default or Lis Pendens. Even though the way in which a foreclosure procedure starts is the same, it can end in one of four ways, which are as follows:
 The property is placed on a public auction at the end of the pre-foreclosure period and a third party buyer purchases the property
 The borrower or owner restores the loan by paying off the default amount during a period that is determined by state law; this period is known as the pre-foreclosure
 If the property is sold by the borrower or owner during the pre-foreclosure period; this sale allows the borrower/owner to pay off the loan and avoid having a foreclosure placed on their credit history
 If the lender takes up ownership of the property; this is usually done with the intent of re-selling the property on the open market. The way that the lender can take ownership is either through an agreement with the borrower or owner during pre-foreclosure or by buying back the property at the public auction.
If you are in the mist of facing foreclosure then it may be a good idea to speak to a real estate agent or a buyer specialist who will be able to advise you on anything that you are able to do to stop the foreclosure from happening and even if this isn’t the case they will be able to guide you through the process and help you get back on the property ladder. So get in touch with one today and start receiving the specialist help that could make all the difference.
MARK Z.
http://www.articlesbase.com/real-estate-articles/what-is-involved-in-a-foreclosure-707646.html
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5 Responses to “What is Involved in a Foreclosure?”
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How do I go about being ripped off alot of money that involved the foreclosure of my home?
My home was going to be in foreclosure, I called this place that said they could help anyone, they were with the BBB so I trusted that….The guy took my money and that was the last I heard from him or the company he works for…tried calling many times and no answer..Can anyone give me any advice on what to do….I’m lost
Calling the police would be a start.
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Is it your goal to be ripped off? Don’t give people your money.
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The BBB is nothing more than a membership program for companies who want to make themselves look creditable. Anyone can join the BBB by paying a fee and giving out some information about the company. Only when there are numerous complaints will the BBB take any kind of action, which is usually just removing the company from its membership rolls.
But, you can try to complain about the company to the BBB, and complain to regulatory agencies. Contact your state’s attorney general, the office of banks and real estate supervision, the city or county the business was located in, the Federal Trade Commission, etc.
Just be aware, though, that if the guy just left town with your money and moved onto another city or state with no forwarding address, you will have a tough time finding him to get your money back. It’s probably gone and spent by now, and it might not be enough to initiate a small claims lawsuit against him, if you can even find him to serve him with the suit.
You can also try contacting local news stations and giving your story of being scammed by a foreclosure company. They are always looking for human interest stories, especially if you haven’t saved the house yet. But that depends on how much publicity you want. It might alert other foreclosure victims to the guy’s scams, though, if he was and still is using his real name.
You may be better off just moving on and finding some way to stop the foreclosure yourself. There are numerous resources online to educate yourself about the foreclosure process and what options might be available for your specific circumstances. It’s better just to trust yourself for now, and only hire someone if you know exactly what you are getting.
Good luck.
ForeclosureFish
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Ronnie is right….you definitely need to notify the authorities…..fraud like this is now very common. they prey on people in desparate situations like forclosures. I am very sorry this has happened to you.
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