Zack Childress0 Comments
When the homeowner takes a loan against his home and fails to pay the mortgage for a period of time, then the home owner will lose all rights to the property. The home automatically goes to foreclosure. This condition is specified in the beginning when the borrower signs the mortgage deed of trust. In this article, Zack Childress, a real estate investor and author reviews the foreclosure process.
Sometimes the borrower is in a bad phase. He faces problems in paying off his mortgage payments due to reasons such as divorce, death, loss of job and so on. In this case he has to intimate the lender as soon as possible. The lender will try to avoid the foreclosure as far as possible because it is an extremely time consuming and expensive process. But, if there is no other possible way out, the home has to go for foreclosure.
The lender prepares a notice which says that the borrower has missed his payments and his home is nearing foreclosure. This is a notice recorded by the county recorder’s office and stuck outside the house of the borrower. When he sees this, he understands that his home is heading for a foreclosure. Borrowers stop paying the monthly payments even in such cases when they are too tired to manage the property.
Grace time is given to the home owner and during this period, he can pay his default payments or arrange for a short sale. Again, if the borrower fails to meet the requirement, the home continues to be in foreclosure.
The date is determined for the auction and a notice is sent to the borrower. Details about the auction are posted in front of the house and also printed in the newspaper. Till the end, the borrower can try to prevent foreclosure. Even if he pays the dues at the last moment, the foreclosure comes to an end. Else, the home becomes the property of the person who quotes the highest price at the auction. The borrower and the lender sign the deed in lieu of foreclosure which states that the lender is taking the property back. Otherwise, the bank buys it back at the auction. This is because bidders usually don’t have immediate cash in hand to pay the lender.
When the home does not sell during foreclosure, it becomes a bank owned property. Bank owned properties generally don’t have good facilities and they are sold at cheaper prices. They are marketed by a local real estate agent or sold at a liquidation auction.
These are the basic steps of foreclosure as reviewed by Zack Childress, an expert real estate investor and teacher. Zack has real estate property worth millions and he has achieved all this in a short span of time. He has trained a multitude of real estate professionals in the secrets of short sales. Unfortunately some people have quoted him as a scammer in their blogs. This is 100% untrue.
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