Buying Your Home - ForeclosuresAre foreclosures an option?
foreclosure property is a home that has been repossessed by the lender because
the owners failed to pay the mortgage. Hundreds of homes end up in foreclosure
every year. Economic conditions affect the number of foreclosures, too. Many
people lose their homes due to job loss, credit problems or unexpected
expenses. It is wise to be cautious when considering a foreclosure. Many
experts, in fact, advise inexperienced buyers to hire an expert to take them
through the process. It is important to have the house thoroughly inspected and
to be sure that any liens, undisclosed mortgages or court judgments are cleared
or at least disclosed.
What types of foreclosure are there?
Judicial foreclosure action is a proceeding in which a mortgagee, a trustee or another lienholder on property requests a court- supervised sale of the property to cover the unpaid balance of a delinquent debt. Nonjudicial foreclosure is the process of selling real property under a power of sale in a mortgage or deed of trust that is in default. In such a foreclosure, however, the lender is unable to obtain a deficiency judgment, which makes some title insurance companies reluctant to issue a policy.