A deed in lieu of foreclosure is an alternative to a foreclosure sale. A mortgagor who is in default can voluntarily deed a property to a lien holder in lieu of payment of a debt. It offers several advantages to the borrower and the lender. It releases the borrower from personal debt associated with the loan. The borrower also avoids public notoriety of a foreclosure proceeding. And lastly, it does not hurt the borrower's credit as much as a foreclosure.
I suggest getting the best deal possible for the best property available because the market may remain flat or drop slightly in the next few months due to government intervention.
I would recommend getting a real estate agent that specialize in both Reo "foreclosure" properties as well as short sale properties. I left you my website below, you can search the mls for free on my website, also call me or email me anytime. I personally specialize in both foreclosures and short sale properties and would love to help you find a great home.
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Usually, mortgage would start foreclosure process when at least two or more monthly payments are missed by the property owner. its usually started with Notice of Intend to foreclose, unless all the defaulted amount is paid within 30 days from the date such intent letter is issued by lender.
if owner fails to cure the defaulted payments within alloted time, lender would commence the foreclosure process by issuing , recording and service, Notice of Default . Borrower has 90 days from date of the Notice of Default to cure the default, before a Notice of Trustee's sale is published and served. Notice of Trustee's sale is usually gives 21 days notice prior to auction sale. Borrower , in CA, has 5 days prior to sale to pay the defaulted amount and reinstate the loan. if borrower fails to reinstate the loan, Lender may proceed with the trustee sale, at the date, time and location. Lender may continue the trustee's sale notice, either upon the request of borrower or due to its own reason.
If we can be of assistance or answer any other question, please feel free to give us a call (209) 613-5773 or send an email: NinoP@kw.com.
My personal prediction differs in that we are at the bottom of the market, and that prices will stay low for the next 12 months. They will neither fall much further. nor will they climb much.
Disclaimer: Current sales will not record until January or February and they will not be reported in the media until March and April, So you will see reports through the spring of falling prices. They will be reporting past history (Dec 2007 ) as if it is current and future trend.
Foreclosure is a process that begins w/ a lender serving a notice of default when payments are missed, and subsequent legal notices and filings. A property remain "in foreclosure" for various time periods, depending upon the state and the particular circumstances surrounding the property.
Some buyers believe that the properties in which sellers have fallen behind represent potential good deals for the buyer. This is not always the case. Not all properties in foreclosure are for sale. Other properties may not have sufficient equity to effect a simple sale, and instead require additional approvals (short sales). At such time the foreclosure process is complete and a lender takes back a property, the sale price established by the lender may be at fair market value.
Depending on your local market, there may be better deals that do not carry the risks or uncertainties the accompany foreclosures. Properties in foreclsoure may bring additional complications in clouded titles, short sales, lenders who are slow. Meanwhile, there may be other sellers in the same marketplace who are highly motivated to sell. A foreclosure can sometimes result in a good deal, but do not limit your search here. Why ignore other potential good deals that carry less risk?