The lender must get a ruling from the courts on a notice of sale or judgment of sale. Making sure there is no protection under the Soldiers and sailors Civil Relief Act of 1940 http://www.defenselink.mil/specials/Relief_Act_Revision/ after that they have to post the certified mail a notice of sale at least 21 days prior to the sale and again 14 days prior to the owner. Advertise ii for 3 consecutive weeks in a paper of circulation for the county and sell the home by a licensed auctioneer. The home owner will then be evicted and if there was an extra proceeds after paying all mortgage liens and legal fees for the sale the owner gets that. Thatâ€™s about all.
Now usually the lender will allow the home owner to sell the home as a short sale with a licensed real estate agent and if they are diligently working on a short sale will postpone the foreclosure or sale date to allow them to sell the home.
The first step is that the home is in preforeclosure. The house may or may not be for sale during this time. If the home can not be sold, or the homeowner wishes to take it to foreclosure, then the home is sold at auction on the steps of the court house. Most times, the bank buys the house back. At that point, an agent is sent to the property in order to determine occupancy. If the property is found to be unoccupied, the home is cleaned and placed on the market.
If the property is occupied, then the eviction process is started. This varies by state law.
Once the property is on the market, the bank is looking for the highest dollar amount that they can get. This is usually determined by an appraisal or a broker price opinion.
There are many factors that determine how much a property is going to sell for. The bank has a certain leeway in the price before it has to go to a supervisor and/or investor for approval.
Good luck in your search!