Foreclosures have been steadily increasing over the past few months in most American cities. Some of the cities with the highest number of foreclosures include Atlanta, Los Angeles, Miami, Detroit, Phoenix and many others.
There are different reasons why homes go into foreclosure. One of the reasons is the day so called sub-prime mortgage mess. This usually happens because many banks relaxed their lending guidelines. And because of this there are a lot of people who cannot affords to buy their own home and were able to buy a home over the past years because of these relaxed guidelines.
Unfortunately, most people who bought homes through mortgages and found out in the end that they cannot afford to pay it. A lot of these mortgages were adjustable rate mortgages. The payments on these loans were initially very low however, the loan payments increased dramatically as the interest rates adjusted upwards. So these homebuyers could not afford to pay and so they had to go to foreclosure.
Foreclosure usually take place when the homeowner is not able to pay his or her mortgage, the bank may decide to take back the property. Different states in US have different guidelines when it comes on how bank can foreclose on a property.
Actually there are two types of foreclosure processes: one is a judicial process and the other one is non-judicial. Some state in the US uses non-judicial foreclosure process. This non-judicial process is very fast. A homeowner can lose their home in as a little 30 days if they fail to pay a mortgage on time.
The bank merely has to go to cost and declared that the mod gauge these view immediately. When this happens, the home owner may come up with the money in order to stop the foreclosure. This can be hard for those homeowners because a lot of them are already facing financial difficulties.
The bank if requires by the law to publish in papers for at least four weeks before the foreclosure date. If happen the home owner does not have enough money to pay this loan within this time, the bank has the right to go to court a set a property at the court steps for the highest bidder. For this bank succeed in selling the home quickly, however most of them would end up buying back the property.
And now the bank will hire a real estate agent to list and sell their property to any interested buyers. These homes are listed at market value. Then if these properties are not sold at fair market value, the bank will discounted the property. This will be a good bargain for savvy homebuyers. These homebuyers really need to work with a real estate agent who knows how to locate these discounted properties.
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Source: http://rawbusinesslaw.com/2012/09/28/the-foreclosure-process-real-estate/
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