Home Foreclosures-shortsaleonlyus.com

Home foreclosures refer to the legally-supported process of re-possessing a capital investment such as a home of an individual in a case where the home or house was presented as collateral for a financial institutional loan.

In the unfortunate circumstance where the home buyer is unable to service the loan, the bank or other financial outfit may re-possess the property with a view to selling it and recovering any monies owed to unto it.

Foreclosure is a process composed of some three distinct stages.

The first stage in the process is referred to as the pre-foreclosure stage. At this stage, the bank files a foreclosure lawsuit. The stage has different names in different states; in some states, it is referred to as ‘Notice of Default’, while in others, it’s called as a Lis Pendis. This is the stage when the bank gets to file a foreclosure lawsuit when a borrower falls back or defaults in payment three consecutive times.

• During the foreclosure stage, the defaulting borrower has a number of options to save the situation and maintain ownership of the property:
• Pay off the whole loan amount in full
• Bring or make the loan current for all past payments in due as well due attorney fees
• Discuss with the loaner with a view to working out a more executable repayment plan i.e. Re-negotiate the loan terms to more flexible and relaxed terms
• Dispose off the house and move on
• Sell off the house to an outside investor and then lease it back
• Refinance the property with another equity lender
• If the amount owed is greater than what the home would sell for, a quick short sale may be executed with the lender

It is important to note that this stage is occur rent only in judicial states and not otherwise

The second stage in home foreclosure is the Trustee Sale or the Auction process. In this stage:
• The bank or lending institution brings forward the property to a public auction
• The ‘sell by’ date is determined after a hearing up to four weeks before the proposed or due auction date
• The homeowner may attend the hearing and make a request of extension to execute himself a home sale. Usually, homeowners can bargain themselves 3 added days in a maximum of sixty days.
• As a matter of statistic, 95% of homes on auction revert to the bank as REOs.

The third and final stage in home foreclosure is the REO stage. REO is an acronym for Real Estate Owned. The REO stage is the third and final part of the (home) foreclosure process as obtains in a judicial state. It is the stage where the property becomes REO should it fail to sell on auction to a 3rd party bidder.

Home foreclosure is expensive business for banks. The process of home foreclosure or repossession to a bank on average costs anything from $35,000 to $50,000. A digression from core business, yet inevitable a consequence or process for a bank, you could say.