Foreclosure Lists

Foreclosure is the legal process by which a lender takes ownership of a property when the borrower fails to make mortgage payments. The lender sells the property to recover the remaining loan balance.

Foreclosure Process

The foreclosure process varies by state but generally follows these steps:

  1. Missed Payments – The borrower fails to make mortgage payments, usually for 3-6 months.
  2. Notice of Default (NOD) – The lender sends a formal notice that the loan is in default.
  3. Pre-Foreclosure Period – The borrower has time to catch up on payments or negotiate with the lender (loan modification, short sale, etc.).
  4. Auction (Trustee Sale) – If the debt isn’t resolved, the property is auctioned to the highest bidder.
  5. Bank-Owned (REO) Property – If the property doesn’t sell at auction, it becomes real estate owned (REO) by the bank.
  6. Eviction – The homeowner is required to vacate the property.


    Benefits of Foreclosure

    For Lenders:

    • Recovers Lost Funds – Allows lenders to sell the property and recoup their investment.
    • Legal Protection – Ensures the lender follows due process before reclaiming the property.

    For Home Buyers & Investors:

    • Discounted Properties – Foreclosed homes often sell for below market value.
    • Investment Opportunity – Investors can renovate and sell for a profit.
    • Lower Interest Rates – Some lenders offer better financing for distressed properties.

    For Borrowers (Limited Benefits):

    • Debt Relief – Clears mortgage debt if the sale covers the outstanding balance.
    • Time to Plan – The process can take months, giving homeowners time to explore options.
    • Potential Cash for Keys – Some lenders offer relocation assistance in exchange for leaving the home in good condition.