Real Estate Foreclosures Defined

If you have questions about the terms 'foreclosure' and 'foreclosure sale', read on. Here are some important definitions that you may find useful. Foreclosure is a process in which a lender takes back a home from a borrower who has failed to make payments on the mortgage. The lender will either sell the property as a whole or to a specific investor.

In the United States, a foreclosure is the result of a failure to pay a mortgage or loan. Individuals who fail to make payments are in default and the lender can foreclose on the property after 90 days. The FMVA, or Financial Modeling and Valuation Analyst, certification program from CFI, trains individuals to become top financial analysts and help homeowners avoid foreclosure. This course will teach you all the key concepts and terminology needed for the profession.

In real estate foreclosures, a judgment is the formal decision of a court. This ruling usually orders a legal remedy for the loser. In a foreclosure case, this could include a public auction of the home. An order of sale is the formal judgment of the court at the end of the foreclosure case. Once this order has been issued, the sheriff will begin the auction process for the property. The buyer of a home in foreclosure has until the foreclosure sale date to make a purchase.

A pre-foreclosure purchase can be time-consuming, and can take months. Unlike a traditional real estate sale, a foreclosure auction will require all bidders to pay cash, reducing competition and lowering the price. Auctions are not always a good idea as buyers are responsible for any liens and can't inspect the property prior to purchasing it. As-is sales can have liens on them, a thorough title search is important.

In a real estate foreclosure, the mortgage holder assumes ownership of a home after a borrower has fallen behind on payments. This process is common, but it is important to know the details of foreclosure and your rights as a buyer. Foreclosure can ruin your credit rating, and it is best to get the basics down before purchasing foreclosed real estate. In addition to preventing foreclosure, you should know about foreclosure protection laws.

If you want to learn about different types of foreclosure, check out the Clermont County Common Pleas Court's glossary. Although this glossary is meant to be an informative tool, it is by no means a substitute for legal advice. Rather than spending your time reading a legal dictionary, you should take some time to determine your situation and choose a qualified attorney. Foreclosure is an emotional and financial situation that can affect your life in numerous ways.

A non-judicial foreclosure occurs when a mortgage holder has a power of sale clause. In many states, a lis pendens is filed with the recorder's office stating that the borrower has fallen behind on payments. This action allows the mortgage company to sell a home at a public auction. However, this method is often faster than a judicial foreclosure. However, the mortgage holder is the first party to receive any proceeds.