The Foreclosure Process: How And When Your Lender Will Likely Foreclose

Economic times are tough and when it becomes difficult to maintain your current mortgage

, defaulting on your monthly payment could bring about a foreclosure on your home. In fact, in the Las Vegas real estate market right now, 60% of the homes currently on the market are foreclosure homes. In different states across the country, there will be slight variations in the foreclosure process, but there is a general frequently used procedure to follow.

You will first need to understand what foreclosure is, why and how it happens and who initiates the process. Foreclosure results if the owner of an establishment can no longer pay the principal or the interest of a loan. In this case, the property is seized and sold as a form of payment.

Typically, after about 3 to 6 months of the home owner missing payments, the lender will order a trustee to send a Notice of Default or NOD. The NOD is the first legal notification that informs the borrower that he or she has not made their payments according to agreement and that the lender will foreclose unless the account is brought current. It will show the balance owing and possibly an estimate of legal fees. If you have not talked to a qualified real estate agent yet, now is the time to find one! With so many homes in Las Vegas in a foreclosure or short sale situation, there are plenty of real estate agents who will want to talk to you. Make sure you hire one with experience in foreclosure and short sales! Bruce and Vicki Simons have this experience, and they want to help you navigate these waters to get your home sold!

Once the NOD has been sent, the homeowner has only so much time before the property is auctioned seized and goes to be sold at a foreclosure sale. This can be as little as two to three weeks from the date of the NOD. It is imperative now that the homeowner brings the payments up to date. If he fails to do so, a foreclosure sale date is established. The homeowner will now receive a notice of sale that will also be posted on the home and recorded in the county clerks office or public records depository. In addition, a Notice of Sale will also be published in the Las Vegas area newspaper. If this is the situation in which you find yourself, you can still hire a qualified real estate agent to help see you through this process. It may not be too late to explore other options!

Next, there is what is called a Trustee Sale. This is a public auction open to any and all bidders in which the highest bidder who meets all of the sale criteria and is held on the steps of the local courthouse. In the auction the lender will state and opening bid which is usually the price of the outstanding balance of the borrower with all the interest and legal fees. The winner of this auction will receive trustees deed to the property.

Should the bid not go any higher than the opening one, the property is sold back to the lender. This then means the property becomes REO or Real Estate Owned. This is often the case as properties are sometimes worth less than the actual amount that is owed to the bank or the lender. Different states have their own foreclosure processes. Know your rights and liabilities as a homeowner or seek qualified legal advice.

Obviously, it is possible that the bank could end up owning your property anyway. It is far better to deal with them in a short sale situation before the foreclosure process concludes.

by: Vicki Simons

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