Learn More About Foreclosure Sales Virginia

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Title: Learn More About Foreclosure Sales Virginia
link : Learn More About Foreclosure Sales Virginia


Learn More About Foreclosure Sales Virginia

By Anthony Collins


Generally, a foreclosure is the scenario that happens when the homeowner does not repay the mortgage. In fact, it is a legal process where the owner forfeits all the right to the mortgaged property. However, Foreclosure sales Virginia happens when the homeowner fails to pay the outstanding debt or else sell the property through short sale. As a result, the property goes to auction, and if the property does not sell at auction, the lender takes possession of the property.

Usually, when a bank loans out some money without any security as the case for a credit card, a lender may only take the borrower to court for the failure to pay. Nevertheless, it would be hard to collect back the money in such a case. As a result, lenders sell such unsecured debts to the collection agencies and the write it off as a loss. Debts without a security as termed as unsecured.

For the secured loans, the situation is usually different. Although a lender can as well suffer some loss due to the default, a bigger portion of the loan can be recovered through seizing and selling the collateral used as the security for the loan. Therefore, foreclosures occur because the home acts as the collateral for the mortgage. In Virginia, there are several stages during foreclosures.

The first stage is when the homeowner misses payments. It begins when the borrower fails to make the mortgage payment on time. That may be due to various hardships such as divorce, unemployment, medical challenges or death. However, when faced by such a situation, it is essential you talk the lender immediately. In some cases, the borrower may intentionally stop paying the loan since the mortgage is higher than the value of the property.

The second phase in a foreclosure is when the lender provides a public notice. When the borrower has missed the payments for 3-6 months, a public notice is given by the lender to the county office. The notice states that the borrower has defaulted the mortgage. The notice is intended to alert the homeowner of the danger of losing the rights to the property, and that he could as be evicted from that property. Depending on the state, a lender can post the notice at the door of the property.

The third phase is referred to as pre-foreclosure. This is where borrowers are given some grace period of between one to four months depending on regulations in the area. At this stage, borrowers may make arrangements with lenders regarding repaying outstanding amount or arranging for short sales. When borrowers pass their debt under such arrangements the process then ends.

The fourth phase is auctioning a property if the borrower have not found a remedy by the set deadline. As a result, a date is set by the lender or the representative of the lender for a property to be sold at an auction. At this point, the home is sold to the one who make the highest bid for a cash payment.

Finally, if a property has not been purchased during the auction, it goes to the post-foreclosure stage where the lender assumes the ownership of that property. Bank owned properties, however can be sold through an open market by agents in local real estate or through liquidation auction.




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