What Is Foreclosure
Home buyers who want a good deal in real estate invariably think first about buying a foreclosure. A tenant may find out that their rental home is being foreclosed when an appraiser comes by the residence to appraise the property in preparation of a sale. If you and the lender have not worked out a plan to avoid foreclosure, the lender can record a Notice of Default in the county where your home is located, at least 30 days after contacting you for the foreclosure avoidance assessment. This auction is either held on the steps of the county courthouse or in the trustee’s office.
However, you may still be able to leave your home without having to go through foreclosure. Also, some lenders prefer to sell their bank-owned properties at a liquidation auction, often held in auction houses or at convention centers. If a payment is not made after a certain time period, the mortgage property is then sold through an auction to the highest bidder, carried out by a local court or sheriff’s office.
The process of buying a foreclosure property can be a long and frustrating one. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender. Foreclosure activity in August at the Middlesex North Registry of Deeds district was down considerably from a year ago. The Notice of Sale states that the trustee will sell your home at auction in 21 days. The mortgage holder can usually initiate foreclosure anytime after a default on the mortgage.
If granted, you remain responsible for the outstanding balance left on the loan after the foreclosure sale. It involves the sale of the mortgaged property done under the supervision of a court, with the proceeds going first to satisfy the mortgage, and then to satisfy other lien holders, and finally to the mortgagor. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale. If the Purchaser fails to pay the balance due within 30 days, the Sheriff will re-sell the property at the earliest possible sale date.
Generally, strict foreclosures take place only when the debt amount is greater than the value of the property. When there is a Section 8 tenancy, the owner who is an immediate successor in interest at foreclosure takes subject to the Section 8 voucher lease and the Section 8 Housing Assistance Payments (HAP) contract. In the case of foreclosure, the mortgage company retains all rights to proceeds from a sale or auction. Barkley found out the truth when a man on a motorcycle came to paste a notice from her mortgage lender on the door warning of foreclosure.