Foreclosures generally are scenarios that take place when homeowners fail to repay their mortgages. As a matter of fact, the process is legal and homeowners will usually have to forfeit their rights to a mortgaged property. Nevertheless, Foreclosure sales Virginia takes place when homeowners do not pay their outstanding debt so that their property is sold via short sales. In consequence, their property is auctioned or alternatively the lender repossesses it when the property never sells in an auction.
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.
However, the case for secured loans is different. Although the lender might incur some loss in the case of default, a large portion of the debt may be recovered by seizing and selling a property used as the collateral for the loan. Foreclosures, therefore, happen since the home is used as the security for the mortgage. However, there are several stages for foreclosures in Virginia.
The initial phase is where a borrower fails to pay. The process starts when borrowers fail to pay the mortgage in time. The failed remittances may be a consequence of various factors including death, medical challenges, unemployment, and divorce. Nevertheless, when one encounters such challenge, it becomes necessary to get it to the knowledge of your lender as soon as possible. The borrowers may at times intentionally stop the payment of the mortgage because the value of the loans are higher compared to the worth of the property.
The second stage in foreclosures is giving a public notice. After the borrower has missed payment for about 3-6 months, the lender makes a public notice with the county office stating that the homeowner has defaulted paying the mortgage. This notice is usually intended to make the homeowner aware of the danger of losing their rights on the property, and can as well be evicted from the home. However, depending on some states, a lender may post the notice on the door of the property.
Pre-foreclosure is the third phase and the homeowner is given sometime known as the grace period between 30 and 120 days depending on the local regulations. During this time, the borrower may arrange with a lender for a short sale or pay the outstanding debt. If the debt is paid at this point, the proceedings ends here.
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.
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.
However, the case for secured loans is different. Although the lender might incur some loss in the case of default, a large portion of the debt may be recovered by seizing and selling a property used as the collateral for the loan. Foreclosures, therefore, happen since the home is used as the security for the mortgage. However, there are several stages for foreclosures in Virginia.
The initial phase is where a borrower fails to pay. The process starts when borrowers fail to pay the mortgage in time. The failed remittances may be a consequence of various factors including death, medical challenges, unemployment, and divorce. Nevertheless, when one encounters such challenge, it becomes necessary to get it to the knowledge of your lender as soon as possible. The borrowers may at times intentionally stop the payment of the mortgage because the value of the loans are higher compared to the worth of the property.
The second stage in foreclosures is giving a public notice. After the borrower has missed payment for about 3-6 months, the lender makes a public notice with the county office stating that the homeowner has defaulted paying the mortgage. This notice is usually intended to make the homeowner aware of the danger of losing their rights on the property, and can as well be evicted from the home. However, depending on some states, a lender may post the notice on the door of the property.
Pre-foreclosure is the third phase and the homeowner is given sometime known as the grace period between 30 and 120 days depending on the local regulations. During this time, the borrower may arrange with a lender for a short sale or pay the outstanding debt. If the debt is paid at this point, the proceedings ends here.
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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