Taylor1 Inc. – Trusted specialists in Real Estate Management
Taylor1 Inc - your trusted experts in the short sale process
Q: What is the process of foreclosure?
A: Foreclosure on property occurs when the owner of a property deem themselves unable or unwilling to meet their normal monthly commitment to repay their mortgage loan.
Q: How long will it take before the foreclosure process will begin to take effect?
A: Mortgage banks, to their credit, will make every effort to avoid foreclosing on the property that they have loaned money against. It is a situation that is neither in the interest of the bank or their clients and they will make every effort to establish a dialogue with the client in default, and to be as flexible as possible in restaging payments. If the client is unwilling or unable to make regular payments, then the bank is obliged by law to instigate the process of foreclosure. The entire process can take between three to six months from the first payment default.
Q: How does the foreclosure proceed?
A: The bank will organize a foreclosure auction, where they have the right to place the opening bid. This will be based on any mortgage outstanding, plus interest, plus the punitive default interest applied and also includes all and any legal fees accrued for good measure. Anyone interested in bidding on the property has to beat this opening bid. Obviously very few people do, especially in today’s economic climate where property prices are plummeting.
Q: What is the next stage of the foreclosure process?
A: Basically the bank now owns your home. They have a legal right to sell it in order to recover their capital. At the same time, until the property is sold, interest on the outstanding balance will be applied.
Q: Can I continue living in the property in the meantime?
A: The answer is yes. The bank has no legal power to evict you until they have sold the property. However, it will be a very uncomfortable situation, both emotionally and physically. It is more than likely that most of the major utility supplies will have been disconnected and you will be living in the dark and without running water.
Q. What is the process when the bank eventually sells the house?
A: This largely depends on how much the house eventually sells for. After all, the bank is only interested in recovering their capital and every last cent of it. If you have any equity in the house, then they are not obliged in any way to recover it. In most cases the bank fails to recover even their capital, which by the time they have reached a sale, will usually have reached fantastic proportions. Once they have received their money from the sale, they will advise you of the proceeds as well as of the difference between the sale price and how much you still owe the bank. The bank is obliged to pursue recovery of the shortfall, and will employ all the considerable legal means at their disposal to do so. This will mean more interest, more legal fees and could lead to the further hardship and shame of being declared an undischarged bankrupt.
Q: Is there any sense whatsoever in allowing a foreclosure to be carried out on my property without a struggle?
A: None whatsoever.
Q: Do I have any other form of option?
A: Yes, the short sale option. This is why so many people are facing up to their situation in a realistic manner, and rushing to take advantage of this pre-foreclosure sale option using tried and tested companies such as Taylor1. This option also gives you some control back over your own financial future.
Contact us now at Taylor1 to arrange a free consultation.
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Taylor1 Inc – Your real estate management specialists in:
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Pre-foreclosure advice | |
Successful Short Sales | |
Helping over-leveraged home owners | ||
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One on One Support | |
Property Investment | |
Matching buyers with sellers | ||
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Real Estate Agent Training | |
Negotiating with lenders | |
Experienced Short Sale Experts |
