Foreclosure is a legal process in which a lender takes the title or forces the sale of a property as a result of the borrower’s failure to comply with ther terms and conditions of the mortgage. (From FLIP: How to Find, Fix, and Sell Houses for Profit. By Rick Villani and Clay Davis) 3 Phases of Foreclosure: Phase 1: Preforclosure (Private) Phase 2: Public Auction (Public) Phase 3: Real Estate Owned or REO (Private)
What is the Foreclosure Timeline? - Preforeclosure begins the day that you are late with your mortgage payment and late charges begin accruing.
- Lender sends notice of default (around 45 days)
- Notice of Intent to Forclose Publicized (around 90 days)
- Auction (around 150+ days)/Real Estate Owned
- Redemption Period: from the time the property sold at auction until the clerk files the paperwork.
Foreclosures cost the lender time and Money. Between legal fees, possible eviction costs, taxes, insurance, maintenance, HOA fees and selling costs, a foreclosure can cost a lender 40K or over. Lenders do NOT want to OWN. Other alternatives to foreclosure are available and Carol can guide you through them. So, before giving up, Call Wendy Cowan at 407-276-6254 and ask her about your options. The first step in the process be to determine if the seller/homeonwer is a qualified short sale candidate. Four key criteria must be met. They are: (1) Demonstrates Hardship, (2) Financially Insolvent, (3) Market Pricing, (4) Cooperative. |