The following is a generalized breakdown concerning the foreclosure process. If you have any questions, please don't hesitate to contact us.
Foreclosure - A foreclosure occurs when the owner of a property is no longer able to make principle or interest only payments on his or her loan. This typically leads to the property being seized and sold by the bank or via auction.
Stages of Foreclosure
If the default isn't corrected within three months, a foreclosure sale date is established. The homeowner will recieve a Notice of Sale, and this notice will also be posted on the propery. In addition, the Notice of Sale is recorded at the County Recorder's office in the county where the property is located. Lastly, the property is listed in newspapers local to the county in question over a three-week period.
If this occurs, and the opening bid is not met, the property is deemed an REO or Real Estate Owned property. This often happens because properties that are up for sale at foreclosure are usually worth less than the total amount owed by the lender.
When you purchase a 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 Real Estate Owned property you will typically recieve the property with a clean title.
Email Us: Email Richard K. Worthington
Give us a call: