Foreclosures

Foreclosures represent more than half of Sacramento home sales market. The foreclosure process allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property securing the loan. The process begins when a homeowner defaults on loan payments and the lender files a public default notice. 

The foreclosure process can end one of four ways: 

First, the homeowner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure. 

Second, the homeowner sells the property during pre-foreclosure. This allows the homeowner to pay off the loan and avoid having a foreclosure on his or her credit history. If the value of the property is less than the mortgage amount, the lender can decide that selling the property at a loss is better than pressing the borrower. Both parties consent to the short sale process allowing them to avoid foreclosure. 

Third, a third party buys the property at a public auction at the end of the pre-foreclosure period. 

Finally, the lender takes ownership of the property, usually with the intent to sell it, but this is not always the case. The lender can take ownership through an agreement with the homeowner during pre-foreclosure or by buying back the property at the public auction. 

If you are planning to purchase a foreclosure, and you don’t have the funds to make an all cash purchase, your first step is to get financing. If you don’t have a mortgage lender, call, text, or email me for a list of referrals. 

Your next step is to find a property. I can help you with that. Search for pre-foreclosure properties here. The best source for bank owned properties is on my home search page. 

Whether it’s getting financed, finding the home, contacting homeowners, negotiating price and terms, or making an offer, I can help you throughout the process.

CA Foreclosure Filings