subject: Detailed Steps Of Foreclosure Process [print this page] If given a serious thought then yes, foreclosure is a bit serious problem and coping with this situation is no less than coping with brutal nightmare. Homeowners dream shatters completely as their house is seized and the same is put up for auction in which he cannot bid for sure. Banks and other government authorities are the ones via which the entire foreclosure is resorted to and by. This happens when the borrower is unable to pay back the amount which he had earlier taken as a loan. Failing to pay his loan installment, the only option left with is putting the property on sale.
Around the globe, foreclosure process follows the same basic principles; slight changes could be seen in laws and regulations in regard to different states. The changes are like in some states certain conditions are to be fulfilled beforehand only. The only option left is auction and the bank authorities find this to be the most attractive way as via this they could attract as much as buyers from all over who could invest or buy the property and their loan amount is also retrieved easily. Adding to this, why common man runs after such property is due to the reason that property is available at a comparatively 20 to 30 percent cheaper rate.
Foreclosure course of action
The foreclosure procedure comes into action when the borrower is incapable of paying his loan installment. Once he receives the notice of default, still if he does not manage to pay the amount back then for sure lender has no other option apart than seizing the property of the borrower.
The foremost step is when the lender issues a default notice in the local newspaper. If the amount is not paid back in 90 days then the following steps are followed via which the loan could be foreclosed.
May be the borrower is able to pay back the amount in the estimated grace period that is given by the bank authorities. If this happens then the borrower has the full right on his property.
Other than this, the borrower could sell his property to any of the third party in the market openly and could easily escape the foreclosure course of action. This in return might harm his financial credibility and record but somehow hell manage to pay back the borrowed amount back to the lender.
There is pre foreclosure procedure also in which the property is sold to the third party by putting it on auction in order to recover the amount.
Either the lender takes the ownership of the property and sells it in the open market and can easily recover the loan also and earn profit also.
The lender has full right of ownership and it is right also. When the borrower is not able to arrange the amount then the lender has full right over his property and could sale at any moment when he feels that he could get his loan back plus could earn a profit also. The lender is the one who initiates the foreclosure process and if borrower feels that he wants to own his house back then he could ask for the pre foreclosure period as redeeming the property is possible in this period only.
