Foreclosure: Definition, Process, Downside, and Ways To Avoid
Rebecca Fikes edited this page 1 week ago


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 tries to recover the quantity owed on a defaulted loan by taking ownership of the mortgaged residential or commercial property and selling it. Typically, default is triggered when a debtor misses out on a specific variety of regular monthly payments, however it can also take place when the customer fails to fulfill other terms in the mortgage document.

    - Foreclosure is a legal procedure that enables lenders to take ownership of and offer a residential or commercial property to recover the quantity owed on a defaulted loan.
    - The foreclosure procedure differs by state, but in basic, lenders try to work with customers to get them caught up on payments and avoid foreclosure.
    - The most recent nationwide average variety of days for the foreclosure procedure is 762