How Foreclosure Works (To know how this applies to you personally click HERE!)

When a person borrows money to buy real estate, such as a house or condominium, the loan is called a mortgage and requires monthly payments. In general if the property owner falls behind in making those payments, the lender can step in and sell the house at auction to settle the debt. Doing so is known as foreclosing on a property.

In most counties in the United States these auctions take place every month.

In most States the law allows lenders to conduct an auction without having to go before a judge on one condition: The lender must give the borrower - and the public - proper, legal notice of its plans to foreclose. Proper notification means advertising in the county’s official legal newspaper. The lender must advertise its intent to foreclose once a week for the four consecutive weeks leading up to the sale date. To auction off a property the first Tuesday of March, for example, a lender must have published a foreclosure notice during each of the four weeks of February.

How to Use the Information

• Property Owners: Protect Your Interests
During the weeks leading up to the courthouse auction date, many property owners are able to work things out with their lenders, seek bankruptcy protection or line up other arrangements to prevent the bank from selling off their homes.

If your lender has started foreclosure proceedings against your property, take action. It is possible to use a Reverse Mortgage to help you avoid foreclosure and have the right to live in your home without payments for the rest of your life. If you want to know how to do this you MUST work with a Reverse Mortgage Professional. Please GO HERE and a Professional will help you without charge or obligation.

• Neighbors: Know What’s Going On
Use Internet posted listings to stay informed about your neighborhood. By law, and for important reasons of public policy, foreclosure notices are for the public to see. They can tell you whether you have a neighbor in need. They can help answer questions you might have about abandoned or poorly maintained property near you. They can give you insights into property values in your neighborhood. Indeed, a foreclosure taking place in your neighborhood can affect your own property values.

• Homebuyers, Investors: Find a Bargain
Foreclosure notices provide valuable leads to prospective homebuyers and real estate investors. Houses facing foreclosure often go for bargain prices. These listings, organized by zip code and street address, can help you spot those potential bargains. The summary information, of course, is just a starting point - a lead for you to follow up on with your own research and initiative. In addition to bidding for a house on the courthouse steps, there are ways to buy the property in advance of foreclosure by dealing directly with the lender’s attorney or the property owner, both generally listed on the web. But be warned: Buying a house facing foreclosure is not for the faint of heart. In general, you must buy the property as is without opportunity for inspection. You have to pay with cash or certified check. And all sales are final. To say the least, make sure you do your homework, do a complete title search, consult with a professional and, above all else, think twice. A Reverse Mortgage can help you buy a Foreclosure. Please GO HERE and work with a Professional. It won’t cost you any more than trying to do it from scratch by yourself.

• Lenders: Protect Your Interests
Many properties are subject to more than one loan, such as a home equity loan or second mortgage. If the lender holding the first mortgage sells the property off at foreclosure, the rights of the secondary lenders may well be wiped out. If you have lent someone money against his or her property, or if you hold a lien, Internet postings provide you with an e alert - in addition to the official notice published in full in the newspaper - so that you can take action to protect your interests.

• Words of Caution
Just because a property is advertised for foreclosure does not necessarily mean it is in foreclosure or that the owner is in arrears. Some notices result from misunderstandings. Oftentimes matters are worked out (or halted) well in advance of the auction date but after the notice has been submitted for publication. Also, just because a property isn’t listed here doesn’t mean it’s not in foreclosure. Again, Internet postings are by no means the official notice.

The person listed as owner may not necessarily be the present title holder. Mortgage value information merely reflects the amount of the original loan amount as listed in the foreclosure notice, not the balance due and not the value of the property.

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