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| Saving for, purchasing and owning a home is a significant achievement often referred to as "the American dream", and the goal of HELP! on Foreclosure is to inform homeowners of how they can protect their assets. In the unfortunate circumstance of Foreclosure, this site contains links and information that may help to answer questions and assist in providing guidance. Foreclosure is basically defined as the mortgagee (lender, bank or Mortgage Company) repossessing real property because the owner has failed to make the monthly mortgage payments, per the promissory note. Homeowners who know that they will not be able to maintain their mortgage payment also have the option of a Short Sale. A Short Sale occurs when a lender agrees to accept a payoff amount for real property that is lower than what is actually owed (selling short of the amount owed). For example, if a homeowner knows that they will not be able to continue to make future payments on their property, they would list the property for sale via the normal real estate listing process, and upon receiving a reasonable offer, the homeowner would present the offer to their mortgagee. Most mortgage companies have what is referred to as a Workout or Retention group, and Short Sale offers are generally handled through Customer Service or the group that handles Administration of loans. The Foreclosure process can sometimes be lengthy and costly, and mortgage companies know this, and are often open to a Short Sale in lieu of Foreclosure. Homeowners who fail to make their mortgage payments may receive a Notice of Default, notifying them that the mortgagee intends to sell the property via auction by a local authority such as the local sheriff's office. In most cases, the mortgagee (lender, bank or Mortgage Company) is present at the auction and purchases the home back. In these instances, the home now becomes a Real Estate Owned asset, or REO. What follows is generally eviction of the homeowner or tenant, securing a clear title for the property, and listing the foreclosed property through regular real estate channels, such as listing for sale with a local real estate agent. Another means for disposing of these lender-owned assets is live out-cry auctions, where hundreds (if not thousands) of people show up to an event where many foreclosed properties are sold at one time. There are many different out-cry foreclosure auction firms liquidating foreclosure assets for owners, and foreclosure auctions are gaining popularity and happening almost every weekend somewhere across the US these days. Click here to learn about foreclosure auctions and see schedules for some of the bigger US auction firms. |
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Copyright 2007. HELP! on Foreclosures. All rights reserved. Commentary, comments and opinions are the express opinions of the site administrator, and may not reflect those of any financial institution. We recommend seeking professional advice.