What is a Foreclosure?

A foreclosure is an action taken against a property owner by seizure of his/her real property. It can be for many reasons. The main cause is delinquent payments on a mortgage. The mortgage company or second and even third mortgage holders contact the owner, then the trustee (usually an attorney) to begin the process. If it is VA guaranteed or FHA insured, many times they offer assistance or alternatives. Then the appraisal is ordered to determine fair market value.

It can also be for medical bills, delinquent taxes and other liens, even credit cards. "The purpose of this foreclosure is for collection of a debt" is usually printed in the legal section of the newspaper as well as some other publications, such as local business papers and law papers.

Many people feel that they can purchase these properties for almost nothing and sometimes that is the case, especially tax sales. If the property is " free and clear" of other liens then it is solely based on the taxes, penalties and interest due. I know of some that have sold for less than a few thousand dollars.

The owner has the right to cure the default right up to the very last minute before the sale. A pay off statement is prepared including the delinquent payments, trustee fees (usually 5 % of the remaining balance of the loan), processing fees, property inspections, appraisal and any other thing the mortgage company can think of. The problem is not only coming up with the funds but knowing what charges are and if they are legitimate. I have only heard of lawyers and accountants challenging mortgage companies on over or false charges. Please rate and tell friends.

Suzie has been in the business twenty years as a licensed real estate agent, broker and certified residential appraiser who majored in real estate and architecture. She hopes to improve the industry one step and one person at a time. Other professionals in the same fields as well as educators have contibuted.

---

Victorian. Modern. Colonial. What?s Your Architectural Style?

You are attracted to a home for more than its... Read More

Real Estate Investors: How to Get a Powerful Marketing Education for Free

I am a total geek.A few weeks ago, late at... Read More

Sell your Property Faster

Learn how to sell your property faster and at the... Read More

Build Your Retirement By Investing In Real Estate

Most people buy one or two properties. One is their... Read More

Moldy Homes are a Great Investment

Have you seen this in your classifieds? -"Will pay $$$... Read More

Seller Objections To Lease Purchase

A large percentage of the mail we receive are from... Read More

What is a Foreclosure?

A foreclosure is an action taken against a property owner... Read More

Reinventing Real Estate, Part 2: Online and Empowered Consumers Are Taking Charge and Paying Less

Demanding consumers"Internet buyers tend to be better informed on market... Read More

Buying a Home ? Dealing With Lender Letters

Most people who set out to buy a home, be... Read More

Should I Invest in Real Estate While Running an Internet Business?

Of course you should. I practice this for quite a... Read More

How Much is that House in the Window?

With the recent release from the UK's biggest mortgage lender,... Read More

How to Calculate Real Estate Rehab Profits

If you are investing in real estate you will face... Read More

How To Simplify Your Real Estate Buying/Selling Experience

Today's real estate consumer has a lot to consider during... Read More

Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with... Read More

Finding A Capable Agent To Meet Your Real Estate Needs

Whether you're a first-time buyer, selling your current home or... Read More

Are You Tired of Tenants, Toilets, and Trash?

Wouldn't you rather go to Tahiti? Are you a landlord... Read More

Think You Can?t Afford Your Own Home, Think Again!

Do you have bad credit, no credit, filed a bankruptcy,... Read More

Important Information For Condo Buyers

Here is a step by step guide for buyers looking... Read More

Purchase Online Tenancy Agreements

Buy an on-line Tenancy Agreement now. As a landlord and... Read More

Internet Battleground for Future of Residential Real Estate

Real estate agents are gearing up to face the biggest... Read More

How to Create Cash Flow Out of Thin Air!

Want to see a trick every real estate investor will... Read More

Credit Help: Buying Real Estate -- Not the Same as Buying Cars

Credit for Buying Real Estate is Different than Credit for... Read More

How Can I Stop Foreclosure on My House?

We understand the being in foreclosure is a scary thing.... Read More

Property Auction & Why You Should Run A Mile From Them

That's A Funny Thing To Say About Property Auctions; They're... Read More

The Real Estate Bubble-When Will it Burst?

More and more individuals are realizing that real estate is... Read More

How To Spot A Good Buy

Beauty is in the eye of the beholder, particularly when... Read More

Choosing a Reputable Real Estate Appraiser

When you are considering purchasing a property; either for investment... Read More

Why Do Realtors Advertise Your Home in Print,on the Radio, on Television, etc.?

Why Do Realtors Advertise Your Home in Print,on the Radio,... Read More

The Secret Jewel in the Mediterranean Crown

Since the Northern Cypriots famously voted 'yes' to the UN... Read More

Dont Get Stuck Having To Deal With The Sellers Household Hazardous Wastes - After You Move In!

I have a confession to make!I was just outside with... Read More

Why Use a Property Manager?

Most experienced property investors use property managers. Why? Because they... Read More

Home Buying ? School District Issues

A good school district is a key factor in home... Read More

5 Things to Look for in a Property Appraiser

Homeowners who are seeking a property appraiser often ask "How... Read More