Foreclosures

A foreclosure occurs when a property owner cannot comply with his/her mortgage, and cannot make principal and/or interest payments on his/her loan, typically leading to property being seized by the bank, and sold, to pay off its mortgage and any legal costs. Most lenders will usually not begin the foreclosure process until three to six payments have been missed. That isn’t a law, but it allows the borrower some time to recover if a financial hardship has occurred and it also indicates to the lender that foreclosure is likely inevitable.  If no payments are made or a payment agreement is not put into place, the lender orders a trustee to record a Notice of Default at the County Recorder’s Office. This puts the borrower on notice that he/she is facing foreclosure and may start a reinstatement period that may typically run until five days before the home is sold or auctioned off.  If the default is not corrected, and the loan is not brought current within three months, a foreclosure sale date is established. The homeowners will receive a Notice of Sale, which will also be posted in local newspapers, and is recorded at the County Recorder’s Office in the county where the property is located. At the Trustee sale, the property is auctioned to the highest bidder. If there are no bids, the mortgage lender will take back the property, and it is deemed an REO or Real Estate Owned.

Although there are several stages at which a foreclosed property can be purchased, a bank owned property is almost always listed for sale, “as is,” with a Real Estate Brokerage.  The goal of searching through foreclosure listings on websites is not to find a house, but to find a competent real estate agent. Foreclosures often require research, patience and persistence. An expert real estate salesperson who knows the market is essential. The sales professionals at Stetson Real Estate are knowledgeable, skilled and experienced professionals who will guide you and advocate for you, first and foremost. Stetson Real Estate has participated in foreclosures and well understands the process. We have worked directly with attorneys, banks and lenders and will facilitate a relatively seamless transaction. Whether you are interested in buying a foreclosed property as your home, or as an investor for resale purposes or rental income, Stetson Real Estate will put your interests first in every transaction.

Every borrower with a home that is a potential foreclosure, and every prospective buyer of a foreclosed property, has a unique set of circumstances. The first step should be a consultation with a Real Estate Attorney.