A foreclosed property – also known as Real Estate Owned (REO) – is a home that was once customer-owned but has been turned back to the mortgage holder as the result of a foreclosure action or acceptance of a deed-in-lieu of foreclosure. If the borrower defaults on the loan the lender has the right to foreclose on the mortgage to force the sale of the property in order to obtain payment for the promissory note. They may be able to assist you in determining if a sale has taken place and the name of the successful bidder or current property owner.
Councilman Tom Hucker, who was a state delegate when the legislature passed a law giving the county this authority, said banks that own these homes are often slow to get homes on the registry in order to avoid paying transfer and property taxes. A pre foreclosure can also be referred to as a NOD (notice of default) or Lis Pendens, which is a formal warning sent to the borrower on a loan regarding the delinquent payment(s).
Before the change, he said, Texas homeowners often turned to bankruptcy protection to keep their homes out of foreclosure. Recently the FHA loans inventory has picked up and the amount of HUD homes available for sale has been increasing. These acquired properties are marketed through a property management services contract with Ocwen Federal Bank FSB, West Palm Beach, Florida.
As a rule of foreclosure process in Texas, the lender is also allowed to bid on the property. Santa Ana foreclosure listings are there to guide you in making the right selection. Since there is a deal with the lending company on the time of the agreement therefore in case of nonpayment of the loan your house is sacked by the company or the bank and is put up for sale to recover the money.
Homes are getting foreclosed upon at a historic rate as people can no longer afford their mortgages. Foreclosure sales made up 22 percent of all sales in the last three months of 2011 and one-fourth in the first quarter a year ago. Foreclosed homes are very easy to transact, which is why they would be an ideal choice not only for the investor, but more so for the renter who dreams of home ownership.