What is Foreclosure?
Foreclosure is a process by which a bank or lender repossesses real property after the owner has defaulted on making payments as per the mortgage agreement and note. Once the lender completes the foreclosure process, they are able to sell the asset to recover as much of the mortgage balance as they can.
Home shoppers like buying foreclosures typically because they can get a good deal on a house or parcel of land that is going through the foreclosure process, usually because there is either deferred maintenance or time constraints that might pressure decision makers to accept a lower price.
Lenders do not want to foreclose on a property. They prefer the borrower sell their property through a realtor and make best efforts to collect on as much of the debt as possible through a short sale, rather than risk losing more money through the foreclosure process.
If you have any further questions about foreclosure, please contact us.