What does bank foreclosure mean?
What does bank foreclosure mean?
Key Takeaways. Foreclosure is a legal process that allows lenders to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. The foreclosure process varies by state, but in general, lenders try to work with borrowers to get them caught up on payments and avoid foreclosure.
How do bank foreclosure sales work?
The traditional way to buy a foreclosed home is at a real estate auction. At an auction, third-party trustees run a sale of homes that banks or lenders have taken ownership of after the original homeowners defaulted on their mortgage loans. Buyers can purchase a home quickly (and often for a low price) at an auction.
What causes a bank foreclosure?
Major reasons for foreclosures are: Debt, particularly credit card debt. Medical emergency or illness resulting in a lot of medical debt. Divorce, or death of a spouse or partner who contributed income. An unexpected big expense.
How do I find out which bank owns a foreclosed property?
Provide the property address and ask to see the deed. If you checked the records at the tax assessor’s office, you can also provide the property number and the name of the homeowner. The record should list the bank that currently owns the home.
How long does it take before a bank will foreclose?
If you’re running into trouble making your mortgage payments, you may be wondering: How long does it take for a bank to foreclose on your home? Most lenders will not begin foreclosure proceedings until a borrower is 3-6 months behind on their payments.
What is the process of a bank foreclosure?
A foreclosure is the process of obtaining a piece of property, usually a home or motor vehicle, to pay off a debt to a bank or financial company. The process of foreclosure takes place with court ordered documents.
Do banks lose money or make money on foreclosures?
The question of whether a bank makes more money on a foreclosure than a short sale depends mostly on the individual bank and/or the investors. By definition, a short sale is granting the homeowner permission to sell their property for less than the homeowner owes the bank. As a result, the bank automatically loses money on it.
