What happens to your property during a foreclosure?

What happens to your property during a foreclosure?

Some homeowners continue to maintain their property during a foreclosure, but not all. In fact, it’s not unheard of for a disgruntled owner to break windows, pour concrete into toilets or paint on the floors, smash the thermostat, or purposely leave the water running.

What does it mean when your house is in pre foreclosure?

Don’t let the “pre” part of “pre-foreclosure” fool you: Pre-foreclosure is serious. While your house won’t be taken from you during pre-foreclosure, it’s the first step in the whole foreclosure process, which notifies homeowners their property is in danger of getting repossessed.

Can a foreclosure be done by power of sale?

Some states may allow foreclosure by power of sale, which allows the mortgage holder to sell the property without court supervision. In some circumstances, the creditor may agree to take the deed (ownership) of the property back. The transfer of ownership and the fair market value of the property must be agreed to by both parties and negotiated.

When did the foreclosure market hit its peak?

Foreclosure purchases thrived in 2009-2010 when a recession-battered housing market hit its peak foreclosure rate. During that time, more than five million homes went into foreclosure and home buyers could often purchase them at more than half off the original price in many areas across the U.S.

Is there going to be a wave of foreclosures?

The bottom line is that although the number of foreclosures is unlikely to approach the levels seen in the Great Recession, there’s a huge wave of default activity coming that will wipe out servicers who don’t plan ahead and make sure they have the people, processes, and technical resources ready to meet the challenge.

What happens if you pull your house out of pre foreclosure?

If you can pull a home out of pre-foreclosure, your credit won’t take as much of a hit as it would if the bank foreclosed. “If it goes to foreclosure, it will be worse because you will still owe money,” Richardson says.

What does it mean to be in pre foreclosure?

Be aware that a home listed under the pre-foreclosure category is a home that is not necessarily for sale. But, since the homeowner is in default on his loan, he may welcome an opportunity to find a qualified buyer who can help him avoid possible foreclosure. Also, the home could be scheduled for foreclosure auction under this category.

Why do lenders hate the foreclosure process?

Lenders hate foreclosures because, even for them, they are legal, financial, and PR headaches. That’s why some lenders agree to a short sale, where you sell your home for less than everything you owe.