Foreclosure





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f o r e c l o s u r e s

A foreclosure takes place when a home or property owner defaults on their payments to the lender. The result is the bank taking hold of the property and eventually selling it for a reduced price either first hand or at auction. This typically occurs after three to six months of missed payments and attempts by the lender to obtain their due have been futile. A Notice of Default is then recorded and the borrower is notified that they are facing foreclosure. The property owner is given three months to bring the loan current. If this fails, a date to sell the property at foreclosure is commenced. The property is posted with a Notice of Sale which is recorded with the County. It is then published in local newspapers over a three week period. A foreclosure will affect credit with imposed restrictions on future borrowing.

a u c t i o n s

At auction, the bank, or lender sets the opening bid for the property. This amount is based on many variables; among them are the outstanding loan balance, accrued interest, attorney’s fees and other related expenses that have incurred. If there are no subsequent bids on the property, the lender purchases the property through the attorney holding the auction. The property is then referred to an an REO (Real Estate Owned). A clean title is given to a foreclosure sale allowing all liens except for property taxes to be obliterated. A foreclosure Trustee Sale is publically auctioned off to the highest bidder. The Notice of Sale dictates when and where the auction will take place. The high bidder awarded the property is expected to pay cash, usually with a deposit up front and the balance due within 24 hours.

d e e d – i n – l i e u . o f . f o r e c l o s u r e

“Deed-in-Lieu” is when the lender is issued the deed and all interest pertaining to a property. This is done to satisfy the loan and avoid having to go into foreclosure. Fair market value and what the property is indebted for is the biggest factor to be considered in order for this transaction to take place. Subsequent to 4 years and up to 7, the borrower can then purchase a property which requires security from a principal residence, second home, or investment property. There are advantages for both sides. The borrower is no longer obligated for most if not all personal debt associated with the loan in default and the impact on their credit is less severe. The borrower also avoids negative public exposure and is apt to obtain more favorable terms than in a conventional foreclosure. The time frame surrounding the proceedings is shortened and the expense of repossession is avoided as well.



  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate
  • wp socializer sprite mask 16px Foreclosure | CT Real Estate

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