Upcoming Foreclosures

How does foreclosure work?

The government takes away your house because you didn't pay property tax on it or keep it up to zoning code, or some reason like that, correct? When the government takes your house, do they give you any money for it? & then the government puts that foreclosed house up for auction, and probably sells it for less than it's worth. Is that pretty much how it works?

Public Comments

1. No. A foreclosure occurs when a property owner fails to make thier contracted monthly house payments, fails to pay thier property taxes if not part of that house payment or if that person is indebted to the IRS (our Govt.) or thier state for past due taxes. They can sue for a judgnment granting foreclosure. The individual has the right to contest, attempt to work out a payment plan (forebearance) or to ride the foeclosure process out and work to Redeem the property after sale. When the Govt. Federal or local siezes a property for lack of maintenance it falls under an enetirely differant set of rules. The ownner should still have rights/ opportunities to correct the situation and save thir property from siezure. If the property is "Condemed" for highest and best use by a govt. entity the process is also different.(maifest destiny) Edit: 9/8/2008 8:45pm Depending upon what state you are inthe process could look like this: 1 The lender files "LIs Pendens." This is the initiation of the foreclosure process. 2.The home owner is given a 30 day period to respond in writting. If there is a responce challenging the motion for "lis Pendens" a hearing is schedueled. If no responce the lender or thier legal team will advertize the order for service. 3. The lender then files and generaly recieves a default judgment of foreclosure. 4. The Lender then is required to advertized the sale. Generally 30ys minimum before the sale. 5. The Sale happens. 6. Following the sale a Special Masters Report of the Sale will be signed off on by the court. 7. In a state with redepmtion periods in effect upon the signing of the Special masters report the redemption period begins. This period is usually 30 days. You are not entered into the foreclosure process by being late. the process begins when the lender files to start the process. I have seen lensers wait/ work with a home owner for 18 months before filing. Additionally throughout the process a home owner can strech out the process by pushing back hearings, filing for bankruptcy or even requesting a foreberance mediator. the foreclosure process is only quick when the home owner has given up and fails to do anything,. For home owners with 2nd & 3rd mortgages these are released upon the foreclosure sale and if done corectly an owner can buy back the property and owe considerably less then when they started. There is tons more information I could give you but probably the best I can give you is ask questions but ask them of professionals.
2. Nope the government does not typically foreclose (unless you mean the foreclosure of a tax lien). Most tax sales convey rights on the purchaser -- but not the right of possession. I assume you mean a typical foreclosure in which a holder of a mortgage on which the borrower has defaulted forecloses on the loan. The process depends on the state the property is in -- in most states these is an equitable right of redemption whereby the borrower can pay the amounts due for some time after the foreclosure auction - the purchaser must in those states cut off that right -- I think judicially. Here in Georgia -- we have non-judicial foreclose where there is no right of redemption -- once the auction occurs -- the property is owned by the highest bidder. If you are thinking about bidding in a foreclosure auction -- be very careful -- I would look AFT the property and have a full title search done in advance.
3. The county will place your house in foreclosure for failure to pay your county taxes. If you fail to pay your taxes and the house sell, why would the county give you any money from the proceeds since they normally sell the house for the taxes owed. Sometimes the county will allow someone to bring your taxes current, thus making this person the new owner if you fail to redeem your house by bringing the taxes current. Some counties have a redemption period in which you may reclaim your house even if it sells at an auction. You need to find out the time limit on this redemption period as if varies from county to county. For failing to keep your house up to codes and standards the city will or county will condemn the house. Normally since it is deem uninhabitable since there code violations they might sell the house to an investor or they will teat the house down. I hope this has been of some use to you, good luck. "FIGHT ON"
4. Foreclosure is actually a process that empowers a lender to sell or re-possess a property, after the owner has failed to keep up with the mortgage payments. Thereby, enabling the lender to recover the owed amount by a defaulted loan. The process of foreclosure begins the very day one misses the first schedule mortgage payment. As soon as the lender registers a delay, he sets the foreclosure clock going for the owner. The norms and legalities of a foreclosure procedure differ from state to state but more or less they all follow a same pattern. The steps involved in the process are 1)Missed Mortgage As soon as the owner misses his monthly payment, he joins the club of the defaulters. As a penalty, the lender issues the owner late fees and other charges. If the owner desires to undo the damages, he needs to pay up the missed mortgage along with the surcharges. This phase of grace period can last up to 3 months. At this point, the investor might also make a proposal to the owner to buy his property or take care of the payments in the exchange for an ownership interest in the home. 2)When legality knocks If the owner fails to repay his mortgage (and extra charges) even after the grace period, he is subjected to legalities by the lender. A legal representative of the lender is assigned the case, who tries to contact the owner and settle all his payments. Lenders can also ask the owner to sell his property through a ‘short sale’ (proceeds of which would help to pay up the existing mortgage). 3)Auction When the lender still fails to get his mortgage, there is an auction of the property. There is a public announcement of the foreclosure auction, the ads of which are place in the local newspapers and court house. On the particular date and time, an auctioneer conducts the auction, by selling the property to the highest bidder. In this case, the former owner can be evicted if necessary.