What Happens During a Foreclosure?
The foreclosure process can be very complicated. We will examine the foreclosure process in detail today.
Unless you're ready to buy your new Piscataway home with cash, you need to apply for a mortgage. When you get the mortgage, you sign a promissory note stating that you agree to pay back the money you borrowed from the bank to finance your home purchase.
If a homeowner falls behind on payments, they will be served with a pending litigation notice from the bank, the lien holder. That notice lets the homeowner know that they’re planning to collect the property and foreclose on that homeowner.
In order for a foreclosure to happen, you would have to be behind on home payments by several years. Eventually, the bank will take over. At that point, the homeowner is evicted from the property and the bank becomes the homeowner.
Once the bank owns the property, they are going to do their best to protect their asset. They will winterize the home, cut the grass or shovel the snow depending on the season, and shut the utilities off so that the pipes won’t burst. The bank will then remarket the home.
Keep in mind that the bank does not want your home; they want it gone. They want to collect interest on their money. The bank is not in the business of owning homes. When banks foreclose on properties, they either hit the auction block for buyers and investors to bid on or they are listed with a real estate agent, also known as an REO broker. The agent will then put the home up for sale.
If you have any questions about foreclosures or about real estate in general, give me a call or send me an email. I would be happy to help you!