The 5 Phases of a Foreclosure

Dated: October 21 2021

Views: 83

Maxus Realty Group Agents are local specialists with knowledge to help you buy and sell the right home, at the right price.

We are passionate about you as a client, we will always protect your best interests just because it's the only way we do business day in and day out.

Today, we'll talk about The 5 Phases of a Foreclosure

First, we have to define what exactly is a foreclosure? 

A foreclosure is a process that mortgage lenders use to take possession of a property after the borrower defaults on his/her mortgage.

If you are having difficulty paying for your mortgage, you must act before the proceedings of a foreclosure begins...

Most major lenders have designed programs to allow a borrower catch up with their payments to avoid a foreclosure

In most cases, 

Banks do not want to foreclose on your property. They want to avoid this process and will offer options that may help you avoid a foreclosure all together.

You must act by calling them, communicating your distress and the reason of your defaulted mortgage payments. 

The Five Phases of a Foreclosure

Here’s a closer look at these five steps.

#1 The borrower defaults on the loan.

The lender will try to contact you and may offer a grace period. 

If you can't pay for your mortgage, contact your lender and do not avoid them.

#2 The lender issues a notice of default (NOD).

After a few months of missed payments, the lender has no recourse but to send a notice of default (NOD) 

You should contact the bank at this time and ask if you have other options. This step is taking you closer to a foreclosure. 

#3  A notice of trustee’s sale is recorded in the county office.

If you can't resolve your situation with your lender, then the lender records a notice of trustee's sale at the local county recorder's office. 

The lender will publish a notice in the local newspaper.

#4 The lender tries to sell the property at a public auction.

The lender will offer the property to the highest bidder at a public auction.

#5 If the property doesn’t sell at the auction, the lender becomes the owner.

This is how a property becomes an REO (Real Estate Owned), At this time, the lender will hire a real estate agent to sell the property to the general public through the MLS 

Our commitment as your real estate professional is to help you find your dream home at the right timing for you.

It's the biggest purchase of your life, and can assure you that even small mistakes can be costly.  BEWARE, technology changes almost daily and I can help you pinpoint all the homes for sale near your location points. I have access to over 18 million properties from hundreds of locations, including Government  properties, action homes, VA homes, HUD Properties and all available private houses for sale in between.

Please call us to get started

Fernando Herboso Broker 301-246-0001 

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Fernando Herboso

Fernando Herboso: Honesty and integrity, along with determination and dedication, are philosophies that Fernando strives for in all aspects of his life. Applying these principles to his business, has....

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