What is a foreclosure?
Question:
Answer:
Skip, as usual, has nailed this question perfectly so I will just give you the in a nutshell version.
Foreclosure is the lenders legal remedy, as granted by the borrower in their signed loan agreement documents, to recover a non performing asset.
This washes the deed of one party and puts the lien holder or assigned, in their place. When buying at a sheriffs sale you purchase the lien holders position and costs associated with the recovery of the asset.
Basically it is when the bank takes possession of your property because you haven't been making payments. They'll auction it off to pay your debt.
If the borrower defaults on a mortgage (Fails to pay) the bank can repo the house. It's called Foreclosure.
A foreclosure happens when a person defaults on their mortgage payment. This usually doesn't happen until about 180 days delinquent. Basically the bank that made the mortgage takes the house and the person that owed on the house is removed from the property.
Hope this helps.
When someone has property with a mortgage lien against it & they don't pay the loan. the bank will foreclose on the loan & keep the property that is the collateral. then they will try to sell it for at LEAST as much as is owed on it.
it's the time between foreplay and doing it...
The lending institution takes possession of your home due to non-payment. They sell the home to cover the cost of the mortgage. Any shortfall in the price of the sale is passed on to the previous owner. (this includes legal fees, title transfer, etc. You are better off selling on your own than having a bank foreclose on the mortgage)
A foreclosure is a legal process as where a lender can take back the collateral because the borrower failed to make the necessary payments as required by the contract signed by the borrower.
There are 2 types of foreclosures
Non-Judicial- This type foreclosure is prescribed by law that is already established. There are prescribed procedures that must be accomplished before the lender can legally take possession of the property.
Judicial- This type of foreclosure has to be taken through the court system in which the property is located. The presiding judge is the ultimate decision maker in the process. The borrower has the opportunity to present his/her side. The result will probably be the same, if the borrower can not prove or present evidence that he can continue to make the payments as prescribed by the mortgage contract the judge will award the collateral to the lender.
I hope this has been of some use to you, good luck.
"FIGHT ON"
it's when the lender takes away the home from not paying to monthly payments. this usually starts when your 2-3 months behind
More Related Questions & Answers...