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Last Updated: May 14th, 2012 - 22:24:01 |
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Foreclosure help is a very vast and extensive topic. The first and foremost thing, which you must understand, is the concept of a foreclosure. A foreclosure is the legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage.
When someone defaults on a loan i.e. that they stopped making mortgage payments, the bank that loaned them the money assumes title. They are then going to auction off the house in order to minimize their losses. They do not want to go through the hassle of putting it on the market and having a real estate agent sell it.
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Every state and county in the U.S. has its own means for taking foreclosure action. However, the concept is the same everywhere. In a foreclosure, a bank might, thru legal means, reclaim title to a property if a borrower has failed to make an agreed upon number of mortgage payments within a predetermined period. You can acquire foreclosure property through three ways- (i) pre foreclosure, (ii) actual foreclosure or auction and (iii) post foreclosure or REO.
If you are interested in investing in real estate or want to buy a house or property within a limited budget, then foreclosure is the ideal choice for you. This is because the value of foreclosure property is at least 15% lower than the market cost, which means it is quite reasonable. All banks and other private lending institutions or companies enlist the properties, which they have foreclosed in a freely available foreclosure list. You can use this list as a guide. The profits from foreclosure investing can be huge. That makes foreclosures attractive. There is an awful lot to know in order to avoid the problems that can occur.
When you buy a foreclosure property, you are going to have to realize that it may not be in good shape. If you are planning to move in, you are probably going to have to do some work on it. If you are buying it as an investment or in order to resell it, then you are going to have to put some money into it. These above are just few of the fundamentals you must know. In order to seek foreclosure help, you must go to the bank or the company, which loaned you the money in the first place. What you have to realize is that the bank does not want to foreclose on you. They want to make things work because they have your cash flows as part of their cash flow system. They made the loan in order to benefit both sides. Their money was guaranteed a return and you were loaned the money to buy the property that you desired. There are ways around foreclosure. The faster you act the better chances you have of saving your property.
Learn more about bank foreclosures and how to get foreclosure listings at bankforclosurelistings.com
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