OakLeaf Plantation Real Estate Jacksonville Florida Real Estate

Archive for the ‘foreclosures’ Category

Foreclosure is a frightening situation for any house owner. Many alternative things happen within the foreclosure process and the lenders actions are different depending on the bank. There are a couple of things however that remain constant when a homeowner is going into foreclosure.

First, a bank will attempt to reach out to a householder at the start of delinquency. It’s good practice for a bank, mortgage company or mortgage servicer to try to resolve any delinquency directly with the borrower before foreclosure. This is for many reasons specifically it’s less costly for the bank to work out loan issues with a borrower than to foreclose on the property. Federal guidelines also dictate particular responsibilities of lenders including a “Hello Letter”. Banks have adjusted to homeowners in foreclosure and hard-line collection efforts are not the standard. A homeowner going into foreclosure should contact with their servicer to determine available options.

When a servicer has exhausted the possibilities to work with a property owner to cure a delinquency, they’ll frequently begin the process of foreclosure. The bank will have to follow state and local laws as they relate to foreclosure. Each state has their own rules as it is related to how foreclosure can be filed, the timeline in which the process will have to happen and other rules such as an imperative redemption period. It’s a best practice for a homeowner who knows that foreclosure is eminent to educate themselves on the local and state guidelines as they apply to foreclosure. It is better for a borrower or previous owner to comprehend the laws and timelines then to be in the dark about the laws.

When the foreclosure is completed and the lender owns the property, the former owner must leave the property unless accommodations are made with the bank. Some banks offer a relocation help program often referred to as “Cash for Keys”. These programs make allowances for a payment to the homeowner in exchange for possession being turned over to the bank in good shape. Lenders will generally retain a local real-estate agent or lawyer to help them in recovering possession of the repossessed property. Once the property is vacated, it becomes REO. REO is an abbreviation for Real Estate Owned, commonly known as bank owned properties that are bought by investors and new homeowners.

When a homeowner is in default or if their income levels will not allow them to maintain their loan, it is a smart idea to reach out directly to the lender and understand what options are available. Lenders must protect their investment in the in the dollars lent on the property and will follow guidelines that are both internal and government mandated to do so. Understanding the method and talking with the servicer will make the process of foreclosure more amenable to a borrower which will inevitably lose their home to the foreclosure process.

Tom Webb is a local REO agent and works with property owners in foreclosure. More information can be found about REO and bank owned homes at http://www.reoopportunity.com.