Everyone knows about foreclosure. These properties, often referred to as REO or real-estate owned homes, have already been through the foreclosure process, with banks having taken them over. If possible make a promise that you will be paying the debts in such a period of time. If you fall behind in the payments on your mortgage, the lender will usually send you a “notice of default” or “notice of delinquency” telling you that your payments are behind.
What is important is that you need to assure them that you will be able to make your repayments. If you agree to a lender’s solution and then fail to make the agreed-upon payments, you’ll be in real trouble. It may be possible to avoid foreclosure at this stage if you immediately call the Workout Department of your lender and offer to pay the full amount of back payments and current payments, or discuss some other type of workout agreement.
Before the auction, a Notice of Trustee’s Sale (NTS) will notify the homeowner and the public of the auction and provide such information as a date, time and location. Another advantage is that you can raise in court any legal defenses you may have to the foreclosureâ€”without having to file your own lawsuit.
The court then issues a default judgment authorizing the bank to sell your home. Once you have located a HUD foreclosure property that you would like to see then all you need to do is contact any HUD approved real estate office to arrange an appointment. In a homeowner’s or condominium owner’s association foreclosure, the homeowner may not raise equitable arguments, for instance that the association failed to fulfill its obligations to maintain the property appropriately.
The court enters a judgment in favor of the bank and a foreclosure sale is held. Make sure NOT to include interest payments, this is ONLY for principal payments. The borrower, usually the homeowner living in the house, is unable or unwilling to continue making mortgage payments When this happens, the lender that provided the loan to the borrower will move to take back the property.