Foreclosure: Definition, Process, Downside, and Ways To Avoid
Emilie Steinmetz edited this page 5 days ago

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Understanding Foreclosure

The Process Varies by State

Consequences



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1. Absolute Auction

  1. Bank-Owned Residential or commercial property
  2. Deed in Lieu of Foreclosure
  3. Distress Sale
  4. Notice of Default
  5. Other Real Estate Owned (OREO)

    What Is Foreclosure?

    Foreclosure is the legal procedure by which a loan provider attempts to recuperate the quantity owed on a defaulted loan by taking ownership of the mortgaged residential or commercial property and offering it. Typically, default is set off when a customer misses a specific number of monthly payments, however it can also occur when the customer stops working to fulfill other terms in the mortgage file.

    - Foreclosure is a legal procedure that enables loan providers to take ownership of and sell a residential or commercial property to recuperate the amount owed on a defaulted loan.
    - The foreclosure procedure varies by state, but in basic, lenders attempt to work with borrowers to get them caught up on payments and prevent foreclosure.
    - The most current national average number of days for the foreclosure procedure is 762