Do You Know What The Term Foreclosure In Real Estate Means

Category: Finance, Real Estate.

Planning an investment in real estate in Maryland? A foreclosure is a process by which a mortgaged property may be sold when a mortgage is in default.

Do you know what the term foreclosure in real estate means? This means that if the borrower has loaned money from a lender or bank by mortgaging the real estate property, the lender may sell the property to recover the loan in case the borrower defaults to repay the loan. Generally, there are people who are unable to pay their mortgage payments due to a various number of reasons which may be led by the lender foreclosing on the property. The foreclosure process starts when a borrower or owner fails to meet the financial obligation and the lender files a default notice on public record, this is called a notice of default. If you have mortgaged a real estate property in Maryland, the lender has the right to take your property and resell it if you fail to make your mortgage payments on time. It also becomes a matter of public record. The foreclosure has damaging effects on your credit history.

Did you know that foreclosure on a property occurs due to several reasons? The lender will send acceleration letter requesting the full amount due and the specific due date when the amount has to be paid. The monthly mortgage payments may not be made, or a scam may be involved and the lender has decided to increase the loan. The foreclosure proceedings will begin immediately, incase the amount is not paid in the specified time and also, the lender will increase the loan. Depending on the state in which the property is situated, and legal action will be initiated. The lender will submit the foreclosure package to the attorney or trustee.

The period of time in which it takes a lender to foreclose varies by state. A complaint is filed by the attorney and the foreclosure process begins. As soon as the attorney receives the package, his or her fees and costs become part of the amount due and the total debt. Once the foreclosure sale process takes place, the property is lost. There are chances that all the personal items will either be set out on the street or stored for a specified period of time. During the foreclosure sale if the former owner remains in the property then they will be expelled out. Also in some states, individuals can be sued for a deficiency balance, and wages and/ or assets can be attached.

The other name for this grace period is Pre- foreclosure period . The receiver or the owner can hopefully have the loan restored by paying off the default amount that is owed during the grace period determined. In the pre- foreclosure or grace period, the borrower can also sell the property to another party. Once you are successful in avoiding the foreclosure this will help you to eliminate bad strikes on your credit history. When the property in question is sold, it will allow the borrower/ owner to pay off their loan and thus avoid the foreclosure process to proceed further. For More Details On Real Estate Investment Maryland, Virgina& DC Visit this site http: //www. therealestateinvestmentqueen. com, http: //www. marylandrealestatesecrets. com