THERE ARE BASICALLY THREE STAGES TO THE FORECLOSURE PROCESS. AT EACH STATE, THE REAL ESTATE IS THOUGHT OF AS A DISTINCT TYPE OF PROPERTY THAT A NEW PURCHASER CAN AQUIRE:
- SHORT SALE ~ PREFORECLOSURES ARE STILL OWNED BY THE BORROWERS WHO ARE IN DEFAULT ON ONE OR MORE MORTGAGE LOAN PAYMENTS. THE OWNER OFTEN HIRES A REALTOR TO ASSIST IN SELLING THE PROPERTY TO SAVE THEIR CREDIT RATING. IF YOU OWN A PROPERTY AND ARE IN THIS STAGE, WE CAN ASSIST YOU IN SELLING YOUR PROPERTY QUICKLY BY CONTACTING US FOR MORE INFORMATION.
- AUCTION PROPERTIES HAVE BEEN POSTED FOR PUBLIC SALE AND MAY BE BOUGHT AT THE TIME OF THE FORECLOSURE AUCTION BY ARRANGING TO PAY THE ARREARS PLUS OTHER COSTS AT THE SAME TIME THE LENDER LEGALLY TAKES OWNERSHIP OF THE PROPERTY.
- REO IS THE TERM FOR "REAL ESTATE OWNED" BY THE BANK, SAVINGS AND LOAN, OR OTHER LENDING ENTITY AFTER THE FORECLOSURE SALE IS CONCLUDED WITH NO OTHER PURCHASER BUYING THE REAL ESTATE.
TO SUMMARIZE, A PREFORECLOSURE OCCURS WHEN THE LENDER INITIATES FORECLOSURE PROCEEDINGS AS THE RESULT OF A DEFAULT. IF THE BORROWER CANNOT CURE THE DEFAULT BY PAYING THE ARREARS, AND DOES NOT SELL THE PROPERTY, IT IS SOLD AT A PULLIC FORECLOSURE AUCTION. IF NO ONE BUYS THE PROPERTY AT THE AUCTION, IT BECOMES REO AND THE LENDER IS NOW THE SELLER.
Remember, Michelle "CAN HELP" and I am here to assist you!