In order to understand what foreclosure home for sale means it is important that we first realize what a foreclosure is. 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, usually through a forced sale of the property at public auction. The money from the property's sale is applied to the mortgage debt.
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, through legal means, reclaim title to a property if a borrower has failed to make an agreed upon number of mortgage payments within a predetermined time frame.
A home foreclosure means that home or property which has been foreclosed, i.e. whose rights or title has been acquired by the bank/money lender because the borrower defaulted in the repayment of the loan. When someone defaults on a loan, meaning that they have stopped making mortgage payments, the bank that loaned them the money assumes title. They are then going to turn around and auction off the house to attempt 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.
Once they have assumed full title, they always auction the property off. This means that they are going to sell it to the highest bid, regardless of its comparison to market value. When a foreclosure home is fully transferred over from the borrower to the bank, the bank wants to liquidate it as fast as possible. Their goal is to recover all the equity they can out if it in the shortest amount of time. The best way that they see fit to do that is to auction it off. That means that they do not want to deal with any aspect of it whatsoever except to get their money back out of it. They will not fix it up or clean it or even get rid of the tenants.
This is one of the reasons why a foreclosure home for sale is available at a much lower price, as compared to the normal market price. If you are a real estate agent looking for a good deal or want to invest in real estate or just want to buy a home within a limited budget, then foreclosure home for sale is the best option for you. How ever before you go ahead and buy it, make sure you are aware of all the related details, pros and cons.
Learn more about bank foreclosures and how to get foreclosure listings at bankforclosurelistings.com
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