The Ins and Outs of Bank Foreclosures
The term foreclosure is one which may seem ominous to many individuals, especially if they have never experienced one and/or are unfamiliar with real estate terms. A foreclosure occurs when a homeowner can no longer pay their mortgage, and their loan goes into default and the bank repossesses the home. There are certain things which all individuals should know about bank foreclosures so that they can be more familiar with the term and prevent this from happening to them.
What the Lender Gains from Foreclosures
A lender profits in various ways from foreclosing on a defaulted borrower's home. First, by repossessing the home, the lender is puts a stop to any future loss that would have occurred as a result of the homeowner's nonpayment from that point forward. Next, the lender can sell the home to try and mitigate its losses (i.e. loan balance, attorney's fees, court costs etc.).
Condition of Title in the Home
When an individual purchases a home in a foreclosure sale, the prospective buyer wants to ensure that the title to the home is good and that there will not be any issue with such a thing should they purchase the home. A good tip to keep in mind is that lenders will generally always bid on a home at a foreclosure auction if they know the title is good. Lenders often bid on foreclosure homes at Sheriff's sales in order to obtain the property and sell it for a greater amount down the road. If there is an issue with the title, they will be less likely to do so.
How Lenders Dispose of Foreclosure Properties
There are a variety of ways in which lenders dispose of foreclosed properties. Some lenders advertise foreclosure sales in newspapers while others retain real estate agencies to advertise the properties for them. The lender wants to choose the most effective yet least timely manner when it comes to disposing of foreclosed properties. Many of the larger lenders have a department within their financial institution which deals exclusively with handling sales of this type.
How to Avoid Foreclosure When You’re in Default
Wessler Law Firm has helped many individuals and businesses, who have found themselves in bad situations, find a way out of the financial holes they have found themselves in.
We can help save your home or business. If you or someone you know is in need of debt relief, please contact us today to see how we can assist you in getting the fresh start you deserve.
We will help put a stop to:
Harassing telephone calls
Collection letters
Lawsuits
Wage garnishments
Evictions
Foreclosures
Repossessions
Contact us today for a free, no obligation, consultation to see if you qualify for bankruptcy and if it is the right decision for you and your family. We will get you relief from your creditors now.
Wessler Law Firm is a small family owned law firm specializing in bankruptcy law since 1982.
Our office is located at 1624 24th Avenue in Gulfport, Mississippi.
228-863-3686
Disclaimer: This article is meant for reference only, and is not intended to be legal advice.
For legal counsel regarding your situation, please consult an attorney licensed in your state.
