Foreclosure Overview

 

Foreclosure is the legal process that allows the lendor to recover the money owed on a loan defaulted by the home buyer. Foreclosure is in effect, "repossession" of the property that's securing the loan.

 

 

 

Types of Foreclosure

Judicial Foreclosure / Foreclosure by Judicial Sale

Requires the sale of mortgage property under the supervision of the court with the proceeds going first to satisfy the mortgage, then lienholders, then home owners if there is any monies left.

 

 

Foreclosure by Power of Sale

Allowed by many states if a "Power of Sale" clause is included in the mortgage. This process involves the sale of the property by the mortgage holder without court supervision. It is generally more expedient than foreclosure by judicial sale. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale.

 

Home Foreclosure Process

The foreclosure process starts when the buyer or home owner stops paying the mortgage. The lender files a public default notice (Notice of Default or Lis Pendens) which begins the pre-foreclosure period, sometimes referred to as the "grace period." During this time, the following three opportunities exist for finding bargains on foreclosure homes.

 

1. Reinstatement: The Borrower can pay off default amount within grace period determined by State Law.

 

2. Property Sold by Borrower: The Borrower may sell the property to a third party to pay off the loan and avoid the stigma of foreclosure on his or her credit report. A third party may also by the Foreclosure Home at public auction.

 

3. Lender Takes Ownership: The Lender can take ownership of the property through agreement with the Borrower during the Pre-Foreclosure period or by buying the property back at public auction. Such properties are considered to be bank-owned or REO properties (Real Estate Owned by the lender).

 

Learn more about the Home Foreclosure Process

 

 

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Why Specialized Realty for buying Foreclosures?

• Our firm specializes in Texas foreclosure properties.
• Our agents are foreclosure experts.
• Our foreclosure focus experience helps us to keep you from potential penalties.
• Our foreclosure expertise ensures a smooth process for our buyers.
• Our experience in working with foreclosures helps you avoid any unforeseen penalties.
• We can make you aware of foreclosures before they go on the market.
• SRG buyer's agents represent the buyer, not the seller.
• We offer a market analysis to assist with negotiations.
• We have connections with lenders and mortgage who know foreclosures best.
• We work with foreclosures on a daily basis, so we know when a "hot deal" comes up.
• We offer foreclosures throughout North Texas.
• We have connections with lender and mortgage providers with hands-on experience working with foreclosures.

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