Foreclosure Process – Learn How Long Foreclosure Process May Take
Foreclosure process is defined as a process which generally occurs in the case when the owner of the property is not able to the gross amount or the interest amount of the loan borrowed by him. This may lead to your property being detained and sold by the concerned finance organization.
The Foreclosure Process basically involves the events that are related to these activities. In actual it is very last phase of a lengthy process in which the lender attempts to get back their money from the borrower.
The various phases of the foreclosure process are described below:
As well as the late payments and legal fees. This is the time when the formal foreclosure process starts. The lender mails a certified foreclosure letter to the borrower through a local sheriff or processor as well as makes public a legal notice of foreclosure in the paper also.
The borrower can make an effort to work out with the lender provided they are ready to make complete payment. Otherwise it may be possible that lender refuse to work out this problem date is published in the paper.
On the day of auction or foreclosure sale, anyone who is interested can come to take part in the auction. But a fixed least amount has to be deposited by that person in advance. Most of the time, the lender tries to cover up all the left costs associated with the foreclosures for sale.
When the auction is closed, the winner of the auction gets a purchase contract issued by the lender. A closing date will be set in case there is someone who bids more than the lender in the auction.
The amount of money that is received from the auction is distributed among the involved parties starting from first priority and then moving to the last. It means firstly the real estate taxes are to be paid, then the mortgage lenders and after them it is the turn of other creditors. After this if any money is left, it is given to the borrower.
There is a redemption period in the foreclosure process after the auction in which the original borrower can buy the property if he can provide the needed finance. It takes around 6 months to complete this whole foreclosure process.