Foreclosure? … Time Frame for Foreclosure?
A foreclosure is when the lender (lien holder) assumes ownership rights when a property owner defaults on his/her mortgage payments…It’s the process through which the lender repossesses real estate that’s owned by a mortgage holder who is unable to continue making payments on their loan. Foreclosure proceedings differ from one state to another…Here’s a rather simplified foreclosure timeline… from a non-legal standpoint:
The Foreclosure Time Line:
1) After an owner is 2-3 months behind in mortgage payments, the bank typically turns to an attorney. Foreclosure proceedings begin with what’s known as a Notice of Default ( lis pendis) after the loan is 3-4 months delinquent.
2) The next step involves scheduling the property to be auctioned on the courthouse steps – to the lender or to an investor .
3) If the property is purchased by the lender, that lender takes title . It becomes what we refer to as a foreclosure or ‘REO‘ (real estate owned by the lender).
Miami Realtors Alexandra and Vicki Restivo are seeing increasingly more homeowners treading water recently. “The current foreclosure debacle may actually have given homeowners who are underwater a chance to become current on their payments. And that may well be the silver lining… for at lease a few!”
As always, anytime you are in the market to buy or sell or invest in real estate, please don’t hesitate to contact the Restivo Team.
