Thursday, April 12, 2012
blog post 2 foreclosure
In this blog post I wanted to do it on Foreclosure. I am going to go in deep on the differences of foreclosure, Foreclosure by Judicial Sale (also known as a Judicial Foreclosure), Strict Foreclosure, Foreclosure by Power of Sale, and Deed in Lieu of Foreclosure, and what each mean and how it affect family houses. But first I will start of with Foreclosure in general.
Foreclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan are. According to msnbc, More U.S. homes are entering the foreclosure process, but they're taking ever longer to get sold or repossessed by lenders.
The different types of foreclosures are Foreclosure by Judicial Sale (also known as a Judicial Foreclosure), Strict Foreclosure, Foreclosure by Power of Sale, and Deed in Lieu of Foreclosure.
Foreclosure by Judicial Sale (Judicial Foreclosure) - is the process of the bank (lender) launching the legal process to sell the borrower’s home under the supervision of the court because of the homeowner’s failure to comply with terms and conditions of the loan agreement (paying their monthly mortgage) signed by both parties upon purchase of the home.
Foreclosure by Power of Sale (Non-Judicial Foreclosure) – Foreclosure by power of sale occurs when the borrower defaults on his/her loan and the lender, per terms of the contract, initiates the right to sell/auction the home without going through the judicial process.
Strict Foreclosure – Strict foreclosure-Please note this option is involved only when the home/property is valued for less than the loan. Many states allow the homeowner to appeal the judicial decision on foreclosure. If the outcome favors the homeowner the court will set a hard date for the borrower to pay their current and past due mortgage payments to the borrower. If the homeowner fails to meet their obligation the lender will obtain title of the property.
Deed in Lieu of Foreclosure- When a borrower voluntary files for foreclosure on their home.
The two most common types of foreclosure are judicial foreclosure and foreclosure by power of sale.
The impact of foreclosure goes beyond just homeowners but also expands to towns and neighborhoods as a whole. Cities with high foreclosure rates often experience more crime and thefts with abandoned houses being broken in to, garbage collecting on lawns, and an increase in prostitution. Foreclosures also impact neighboring housing sales on two levels—space and time.
In this blog post, I explain the differences of Foreclosure and what they all are. In this blog post I learn a lot about them and a lot of things that I didn’t learn before like why one would have a deed in lieu or when the bank begins the process. Or which out of the foreclosure are most popular.