What is a foreclosure?
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Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."
Have you owned houses on other planets?
A foreclosure is similar to an eviction but you have more time to evacuate the premises. When you purchase a house you go to the atttorney's office to sign your package from your lending facility. In that package you have documents that you agree; if you don't pay, you don't stay. If you agree to those terms and you do not abide by them, you will be foreclosed on by an attorney also. Your lending facility then has the right to resell your house to get their money you oewd at the time of foreclosure.
depending on what the laws in your state are a foreclosure could be a house that is noting being paid for by the "owner" for a short time or a long time. for instance where i live if i own my house but i don't pay the mortgage for 4 months my house becomes a foreclosure meaning the bank is going to repossess the house. if you want to buy a foreclosed property generally they are auctioned off at public auction and you have to have the full amount of the house in cash within 24 hours. beware that often the "owners" of the house will still live there until you the new owner evicts them which can take as long as 6 months sometimes. while of course they are in the house trashing it. i would be very careful when dealing with a foreclosed property. if i were you i would look for a house that perhaps the owners are falling behind on their payments but have not yet been foreclosed on and they have it up for sale that may be a good oppurtunity to get a good deal so they can avoid foreclosure. there are many services that provide that info online. foreclosure.net is one of them. good luck.
When you purchase a property you give a deed of trust to somebody else. For this example lets say Wells Fargo gives you 200,000 to buy the home. You give them a trust deed, you own the property but there is a lien put against the property.
If you dont follow the agreements of the Trust deed from the bank, they can foreclose. A forclousure basically is from somebody saying they have as much right to this property as you do. Unlike being evicted from a home you dont own, you are being evicted from a home you do own. Because of that it has to go to court and certain things have to be followed.
You can fight it in court or you can meet the terms of your Trust Deed. Anybody that has a lien or interest in your house can foreclose on your property. That normally would be either your 1st or 2nd mortgage, or the county (county taxes).
You can stop forclosure at any time if you pay the trust deeds or back taxes (which is rare they would ever foreclose on that).
Foreclosure properties are properties that have been reposed by a lean holder, and the former owner has left or been evicted. This is what happens when you don’t pay your mortgage. Very similar to not paying your car payment, except the repo man cannot chain up the house in the middle of the night and tow it away.
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