Foreclosure 1 1 
The Process of Foreclosure
Tabatha Prentice
BUSN 121: Real Estate Practice Proffers: Steve Kipuros
Foreclosure Process
Intoduction
Foreclosure is a process where a homeowner forfeits there rights to a property because they have failed to pay the mortgage. In some cases a bank may allow the property owner to sell their home via a short sale. If the bank will not grant a short sale the property will go to auction where it will either be sold or becomes bank owned. The word foreclosure has become a very dirty word, but it doesn’t just happen overnight it is a lengthy process. There are five major steps involved in all states missed payments, public notice, pre-foreclosure, auction, and post-foreclosure.
Missed Payments The length of which it can take a bank to foreclose on a property can vary by state. Normally it will take at least three missed payments, but can take up to five before the foreclosure process will begin. There are programs out there available for homeowners to help them keep this process from ever being started that include everything from mortgage modification to government assisted programs. For most homeowners foreclosure has almost become of choice mostly related to the decrease in home values we are seeing more and more people who are house poor.
Public Notice After a number of payments have been failed to be made the lender will seek out the County Recorder to issue a public notice. This notice can be called many different things depending on the state in which you live. The notice is an attempt to make the homeowner aware of the situation, and its severity. In most situations there will be multiple notices sent out in several different ways including but not limited to being posted on the door. In reality, starting a foreclosure action sooner rather than later can be a motivator that produces positive results. Of all the foreclosure actions initiated, only a fraction will go all the way through the foreclosure process.
Tabatha Prentice
BUSN 121: Real Estate Practice Proffers: Steve Kipuros
Foreclosure Process
Intoduction
Foreclosure is a process where a homeowner forfeits there rights to a property because they have failed to pay the mortgage. In some cases a bank may allow the property owner to sell their home via a short sale. If the bank will not grant a short sale the property will go to auction where it will either be sold or becomes bank owned. The word foreclosure has become a very dirty word, but it doesn’t just happen overnight it is a lengthy process. There are five major steps involved in all states missed payments, public notice, pre-foreclosure, auction, and post-foreclosure.
Missed Payments The length of which it can take a bank to foreclose on a property can vary by state. Normally it will take at least three missed payments, but can take up to five before the foreclosure process will begin. There are programs out there available for homeowners to help them keep this process from ever being started that include everything from mortgage modification to government assisted programs. For most homeowners foreclosure has almost become of choice mostly related to the decrease in home values we are seeing more and more people who are house poor.
Public Notice After a number of payments have been failed to be made the lender will seek out the County Recorder to issue a public notice. This notice can be called many different things depending on the state in which you live. The notice is an attempt to make the homeowner aware of the situation, and its severity. In most situations there will be multiple notices sent out in several different ways including but not limited to being posted on the door. In reality, starting a foreclosure action sooner rather than later can be a motivator that produces positive results. Of all the foreclosure actions initiated, only a fraction will go all the way through the foreclosure process.
References: Lainie , P. (2014, Jule 22). Federal foreclosure protection laws. Retrieved from http://ehow.com/about_6301539_federal-foreclosure-protection-laws.html (Lainie , 2014) Understanding Your Foreclosure Rights: A Consumer Law Review. (2008, August 8). Retrieved August 7, 2014. Olens, S. (n.d.). Mortgage and foreclosure information. Retrieved from http://law.ga.gov/mortgage-and-foreclosure-information (Olens) Real Estate Agents Learn the Intricacies of the Short Sale. (2008, August 8). Daily Herald (Arlington Heights, IL). Retrieved from http://www.questia.com Shiller, R. J. (2008). The Subprime Solution: How Today 's Global Financial Crisis Happened and What to Do about It. Princeton, NJ: Princeton University Press. Retrieved from http://www.questia.com