Understanding the foreclosure process is necessary for anyone looking to flip real estate. There are major steps in this process that anyone interested should know about. Real estate investment is particular, making it important to do your research on these topics.
Let’s look into the major steps in the foreclosure timeline.
Foreclosure is the process where a borrower defaults on a loan, allowing the lender to sell the property and recover the amount owed. Almost every marketing in the United States can feature a foreclosed home awaiting investors. However, lenders must follow specific steps in order to put the house up for foreclosure.
The first step of the procedure is when the first payment is missed. This comes with a grace period of 15 days, allowing the borrower time. With more and more missed payments, further action is taken. The next phase is to contact potential sellers about where the lender and borrower are in the process.
In the third stage, the lender reports to the county about the default on payments. This process allows people to know there will be a potential auction for the property. It may seem like the homeowner is written off at this point, however, they can still pay the entire cost back to obtain rights back to their home.
The property is placed for sale, allowing anyone, including the borrower to place a bid on the home. When the property is sold to the highest bidder who then claims the trustee deed. If no one bids, the lender now becomes to owner who can sell the house with real estate managers.