Consider When Deciding to Buy a Foreclosure Dominion Lending Centres

Property foreclosure is a situation in which a homeowner is unable to make full principal and interest repayments on his/her mortgage, which allows the lender to seize the property, evict the homeowner and sell the home, as specified in the mortgage deal. One month after the homeowner misses a mortgage loan payment, he/she is in default and will be notified by the lender. Three to six weeks after the homeowner misses a mortgage payment, assuming the mortgage is still delinquent, and the home owner has not comprised the missed payments within a specific grace period, the lending company will get started to foreclose. The farther behind the customer falls, the more difficult it becomes to catch up since lenders add fees for payments that are 10 to 15 days overdue.

Each state has their own foreclosure laws within the notices the lender must post publicly and/or with the homeowner, the homeowner's selections for bringing the loan current and avoiding foreclosures, and the process for selling the property. In twenty-two states – including Florida, Illinois, and Nyc – judicial foreclosure is the norm, meaning the lender must go through the courts to get agreement to foreclose by showing the borrower is delinquent.

If the foreclosure is approved, the local sheriff auctions the property to the highest bidder to try and recoup what the bank is due, or the bank becomes the owner and markets the home through the traditional route to recoup the loss. The entire judicial foreclosure process, from the borrower's first, missed transaction through the lender's sale for the home, usually takes 480 to 700 days, in line with the Mortgage Bankers Relationship of America.

The other 28 states – including Arizona, California, Georgia and Texas – generally use non-judicial foreclosure, also called the power of sale, which is often faster and does not go through the courts unless the home owner sues the lender.

Another Image of Foreclosure Redeemed:

Logitech Squeezebox: Foreclosure Auctions

Calculated Risk: Freddie Mac: $4.5 Billion Net Income, No Treasury

Foreclosure AL Right of Redemption Law May Apply. Contact Diana

12/28/2010 2010 worst year for bank failures since 1992

Related video of Foreclosure Redeemed