How does the process of foreclosure take place?

by admin

Posted on August 8, 2017


Foreclosure homes for sale in Harlem

Foreclosure takes place by 6 steps when the borrower misses on paying his payment on time. The lender acquires the property legally. The following are the 6 stages of foreclosure

Not paying on time

Even a single payment is not made on time, it is said to be payment default. Usually the first day of every month, the payment has to be made by the borrower to the lender. The borrower can take up to first 2 weeks of a month to pay the amount. If he fails to meet the deadline, then it is the duty of the lender to send a notice to the borrower that he has missed out to pay the mortgage. The lender is allowed to charge late payment fee which will affect the credit score of the borrower.

Reinstatement period

Notice of default is valid when the borrower fails to make 3 months of non-payment. It is stuck on the door of the home which is visible to the public.The loan gets transferred to foreclosure department of the county where the property is situated. Following which, the borrower avails reinstatement period which is another 90 days to make his default payments. The discussion takes place with the borrower’s agent to move forward with foreclosure homes for sale in Harlem or not depending on the credit history.

Foreclosed Home goes for sale

When the borrower again fails and couldn’t make his payment, notice of trustee sale is filed in the county. Eventually the foreclosed property is available for public auction; to spread this message the lender is responsible to advertise it on newspapers for 3 weeks along with the borrowers and whoever holds the property ownership. It includes detailed description of the property like address, venue of the auction etc.  This is the time when investors who are the buyers in this situation can take part in the auction and can purchase the foreclosed property.  The investors are allowed to research about the house and gather information of recently sold foreclosed homes at county office which will give an idea about the price to bid at the auction and buying a reo properties.

Auction

The auction takes place and the lender begins the event with the outstanding amount due. Investors’ starts bidding and the one who bids the highest can own the property if and only if he satisfies all the criteria put forth by the lender and foreclosure department. After the confirmation of the bidder, the Trustee’s sale deed is signed, and he is legally allowed to occupy the possession and will be termed as purchaser.

Lender ownership

If the foreclosure homes for sale in Harlem is not sold in auction, then with the help of the broker or any agency the property is sold with an attractive price. For investors who missed out at the auction can make use of the opportunity. If again the property is unsold, then the ownership is moved onto lender’s name, which is also known as Real estate owned (REO).

Vacating the property

The borrower is allowed to stay in the property until the foreclosure homes for sale in Harlem is sold at an auction or moved to lender’s ownership. At this juncture, the eviction notice is sent to the borrower to vacate the place. The borrower is given time to remove the belongings and foreclosure department people will come and evict the borrower and his family.

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