Understanding Foreclosure and all the things involved with the process can be of great benefit to your real estate investing strategy.? This article will explain how the foreclosure process works and how investors are building wealth from them.
What is a foreclosure?? ?The process of taking possession of a mortgaged property as a result of someone?s failure to keep up mortgage payments?, is how it is defined.? So in simple terms a foreclosure is when a person or company buys a piece of property using a
lender and fails to make the payments, the lender then takes full possession of the property.
Foreclosures nationally were up 47% in March from a year ago, and up 7% from last month alone, according to RealtyTrac. While foreclosure rates leveled off last year in the second and third quarters, many economists and industry insiders are predicting foreclosures to surge again in coming months.? Any investor that sees those stats understands that those statistics simply means there will continue to be more and more real estate investment opportunities for quite some time.
So as you can see understanding foreclosure process can really increase your wealth and I recommend anyone who is considering investing in real estate to take advantage because there is abundance for us all.
The foreclosure process differs from state to state, but I will give a brief description of the general steps that are taken.? If you?re faced with foreclosure, it?s important that you research your state?s laws and practices, understanding foreclosure will help you to be prepared just in case.
The foreclosure process can begin as early as a single missed payment, but it?s highly? unlikely because most banks and lenders allow a grace period for late payments, usually with a late fee added on and besides they are not wanting to do a foreclosure, in fact that?s the last thing they want to do.
All lenders are different and have different policies so be sure to read over their foreclosure process before signing.? Usually after the second missed payment, you?ll more than likely get a phone call and the lender will request both payments and late fees and will probably refuse any partial payments, this is why understanding foreclosure is so important, because you could lose your house over a few missed payments.
Understanding Foreclosure Should Be Taken Seriously
Things really start to get serious after the third missed payment and the lender will usually begin the foreclosure proceedings one of two ways, either by power of sale (carried out entirely by lender) or judicial sale (process must go through court).? The judicial sale is the more common one so I will give the remaining steps to the process.
(1)? Mortgage lender will file suit with the court system
(2)? You will get a letter from the lender demanding the payment to be made in full, immediately.
(3)? Usually you are given 30 day to respond with full payment to avoid the foreclosure
(4)? If no payment is received, a judgement will be entered and the lender can usually sale the property at sheriff?s auction within a few months
(5)? Once the sheriff gets papers he will serve you an eviction notice and give you short time frame to leave property by deadline and if not the locks will be changed and all of your possessions that remain are forfeited.
(6)? The auction will take place on appointed date, lender will get paid and property will be released to new owner.
Understanding foreclosure is very important to all homeowners who have their house financed by a lender.? That?s the foreclosure process in a nutshell, however I recommend you to do more research for your particular state so that you will be well informed if you ever happen to deal with with this unfortunate situation.
If you are dealing with a foreclosure or would just like to learn more about real estate investing and how you can take advantages of the many opportunities join my free VIP LIST to get free mentoring.
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P.S. Understanding foreclosure can really benefit your real estate investing strategy.
Source: http://www.empowernetwork.com/mrcharls/blog/understanding-foreclosurereal-estate-investing-strategy/
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