Foreclosures take quite a bit of time for the process. That’s why when you see a home that looks vacant, and you think you would like to make an offer on it, you may NOT want to wait it out until the home is available to be sold. The process could take two or three years in our area before the home is marketable. Many times the owner leaves and they are usually no where to be found. At that point they are not willing to do anything to work with the bank. Therefore, you would not be able to touch that home until the entire Foreclosure process has been completed, and the bank has gone through the legal process to regain the title free and clear.
The bank does not own the home if you stop paying.You own the home until the bank forecloses on it. They are suing you for foreclosure in court to regain the title free and clear from you for the interest in the home.
In Central Florida it takes about 24 months minimum from start to finish on a foreclosure on average due to extreme volume. There are clients who due to varied circumstance have been in foreclosure for over three years. All Florida foreclosures differ.
The Foreclosure Process
The foreclosure process differs by state, but general steps that are taken. If you’re faced with foreclosure, it’s important that you research your state’s laws and practices.
Foreclosure proceedings can begin after a single missed payment, but it isn’t very likely. Most banks and lenders have a grace period for late payments, usually with a fee added on. It typically takes being a full 30 days late for the alarm bells to go off. After the second missed payment, you’ll be getting some phone calls. Many lenders will only accept both late payments to bring the loan current. They also may refuse any partial payments.
Once you fall three months behind, things get serious. This is typically when most lenders will begin the foreclosure process in one of two ways: judicial sale, which requires that the process go through the court system, or power of sale, which can be carried out entirely ¬by the mortgage holder.
All states allow judicial sale, while only 29 allow power of sale. If your state allows power of sale, the loan papers will usually have a clause that says this method will be used. Power of sale is typically faster than the judicial route.
Both types of foreclosure require that any other involved parties be notified of the proceedings. For instance, if the homeowner took out another loan against the house with a third party, that lender must be contacted and its loan amount must be paid from the auction’s proceeds. If the third-party lender isn’t paid, it can apply the mortgage to the new property owner. Many times, the lender will actually buy the property back and attempt to sell it through the real estate market at a later date.
There can also be deficiency judgments made against the borrower if the sale of the property doesn’t satisfy the amount of the loan. The entire difference between the two can be required, although some states only require that difference between the fair value of the property and the loan amount be paid.
Once a home has gone though the process and is now on the market, I would be happy to show and sell you the home. Please give me a call and let’s get started!
However, if you are considering walking away from a home you no longer can afford, please give me a call, there are options that you may want to consider.