A foreclosure is generally what happens if the homeowner fails to repay a mortgage. Actually, this is a legal proceeding where the homeowner loses all the rights on the mortgaged property. Nevertheless, foreclosure sales Virginia take place if the borrower has failed to pay the debt or sell the home through a short sale. Because of this, the property is auctioned and if it does not sell at the auction, the lender assumes the ownership of that property.
Normally, if a lender loans some money without a collateral such as in the case of credit card, the lender can only take you to court for failure to pay. However, it can be hard to collect the money from the borrower. However, they usually sell such debts to collection agencies and write off the loss. Such debts taken without a collateral are considered unsecured.
In the case of secured credits, the situation is different. Even though the lender may suffer some losses in the event of a default, larger portions of such debts could be reclaimed by taking and disposing any property that was used as the loan collateral. Foreclosures, in this case may happen because a property is placed as security to the mortgage. Nonetheless, foreclosures go through several phases in Virginia.
The first phase is when the borrower misses payments. The process begins if the borrower does not make payments for the mortgage on time. The cause for failure to make payment could be due to some factors such as unemployment, divorce, death, and medical challenges. However, when you encounter such hardships, it is important to notify your lender immediately. The borrower can sometimes stop paying the mortgage intentionally since the loan value is higher than that of the home.
The second stage in foreclosures is giving a public notice. After the borrower has missed payment for about 3-6 months, the lender makes a public notice with the county office stating that the homeowner has defaulted paying the mortgage. This notice is usually intended to make the homeowner aware of the danger of losing their rights on the property, and can as well be evicted from the home. However, depending on some states, a lender may post the notice on the door of the property.
The third phase is referred to as pre-foreclosure. This is where borrowers are given some grace period of between one to four months depending on regulations in the area. At this stage, borrowers may make arrangements with lenders regarding repaying outstanding amount or arranging for short sales. When borrowers pass their debt under such arrangements the process then ends.
The fourth stage is auctioning the home if a remedy is not found by the deadline. The lender or his representative sets the date for auctioning the property. During the auction, the house is sold to the highest bidder.
Finally, if the property is not bought by a third party at the auction, it enters the post-foreclosure phase where a lender takes the ownership of the home. However, bank owned properties may be sold on the open market by the local real estate agents or through a liquidation auction.
Normally, if a lender loans some money without a collateral such as in the case of credit card, the lender can only take you to court for failure to pay. However, it can be hard to collect the money from the borrower. However, they usually sell such debts to collection agencies and write off the loss. Such debts taken without a collateral are considered unsecured.
In the case of secured credits, the situation is different. Even though the lender may suffer some losses in the event of a default, larger portions of such debts could be reclaimed by taking and disposing any property that was used as the loan collateral. Foreclosures, in this case may happen because a property is placed as security to the mortgage. Nonetheless, foreclosures go through several phases in Virginia.
The first phase is when the borrower misses payments. The process begins if the borrower does not make payments for the mortgage on time. The cause for failure to make payment could be due to some factors such as unemployment, divorce, death, and medical challenges. However, when you encounter such hardships, it is important to notify your lender immediately. The borrower can sometimes stop paying the mortgage intentionally since the loan value is higher than that of the home.
The second stage in foreclosures is giving a public notice. After the borrower has missed payment for about 3-6 months, the lender makes a public notice with the county office stating that the homeowner has defaulted paying the mortgage. This notice is usually intended to make the homeowner aware of the danger of losing their rights on the property, and can as well be evicted from the home. However, depending on some states, a lender may post the notice on the door of the property.
The third phase is referred to as pre-foreclosure. This is where borrowers are given some grace period of between one to four months depending on regulations in the area. At this stage, borrowers may make arrangements with lenders regarding repaying outstanding amount or arranging for short sales. When borrowers pass their debt under such arrangements the process then ends.
The fourth stage is auctioning the home if a remedy is not found by the deadline. The lender or his representative sets the date for auctioning the property. During the auction, the house is sold to the highest bidder.
Finally, if the property is not bought by a third party at the auction, it enters the post-foreclosure phase where a lender takes the ownership of the home. However, bank owned properties may be sold on the open market by the local real estate agents or through a liquidation auction.
About the Author:
When you are looking for facts about foreclosure sales Virginia residents can come to our web pages. More details are available at http://siwpc.net now.
Aucun commentaire:
Enregistrer un commentaire