• Home
  • Evidence of Success
  • Homes for Sale
  • Your Home Value
  • Client Resources
  • Real Estate Advice
  • About Us
    • The Pivec Group Belief System
    • Meet the Team
    • Client Testimonials
    • Contact Us
    • Careers

Matt Pivec with The W Home Group of Next Step Realty

Baltimore Real Estate

Foreclosure: What is it?

March 8, 2016 by Heather

Foreclosureforeclosure

Don’t know what a foreclosure is? Well you’re in luck. This entire blog is about foreclosure and its lengthy process! Sounds interesting, right? Let’s jump in shall we…

A foreclosure is when a homeowner’s rights are surrendered due to nonpayment of the mortgage. If the homeowner cannot payoff the remaining debt, or sell the home in a short sale, it will go to a foreclosure auction. If the home does not sell at auction, it then becomes property of the bank. A foreclosed home usually doesn’t go on the market until the entire foreclosure process is complete:

Phase 1

You will find that the foreclosure process varies from state to state, but it always starts with missed payments from the borrower. There are many reasons that could lead to the homeowner missing payments, such as being laid off, recent death in the family or divorce.

Phase 2

In this phase, a public notice is issued by the lender, if the borrower has three to six months of missed payments. Depending on the state law, this notice is required to be posted on the front door of the property in order to inform homeowners that they are at risk of losing property rights.

Phase 3

After borrowers receive this notice, they enter into a grace period  called “pre-foreclosure.” This period lasts usually anywhere from 30 to 120 days, in which the borrower can work out a deal with the lender through a short sale, or to pay the outstanding debt owed. If during this phase the borrower is able to pay the outstanding payments, foreclosure ends and the risk of eviction or sale is avoided. However, if the borrower does not, the foreclosure process continues.

Phase 4

If the borrower has still failed to make outstanding payments, the lender sets a date for the home to be sold at an auction. At the auction, the home is sold for the highest bidder for payment to be made in cash. Because not many people cannot afford to pay for a house in cash on the spot, the lender and borrower usually make an arrangement where the lender simply takes the property back, or buys it at auction.

Phase 5

If the home is not sold to a third party at the foreclosure auction, the bank takes ownership of the property – it then becomes a bank-owned property. A bank-owned property usually is listed by a local real estate agent for sale or the bank sells the home at a liquidation auction.


Are you thinking of buying or selling a home, or have a friend or family member who is? Contact The Pivec Group today by calling 443-692-8800 or visiting our website! We look forward to hearing from you and helping you find YOUR dream home!foreclosure

Filed Under: Real Estate Advice Tagged With: auction, foreclosure, process, short sale, what is foreclosure

🔎🏠 Search Homes for Sale!

🏠 🤑 What’s Your Home Worth?

🇺🇸 Veteran Home Buyer?

Find out how you can benefit from our home buying program - The Maryland HOMEtown Heroes Program.
  Click here for more information
 

📝 Popular Real Estate Blogs

Featured Articles and Posts

9 Silverton Court

9 Silverton Court| Listing Agent – The Pivec Group 443-692-8800

9 Silverton Court Property Description 9 Silverton CourtBaltimore, MD 210303 Bedrooms |2 Bathrooms | $250,000| MLS: MDBC457680 … [Read More...]

Free Donuts at Duck Donuts in Nottingham on National Doughnut Day!

Duck Donuts in Nottingham is giving away free donuts on June 7th, 2019 - National Doughnut Day! "As a brand that originated in the beach town of … [Read More...]

1300 Haubert Street

1300 Haubert Street| Listing Agent – The Pivec Group 443-692-8800

1300 Haubert Street Property Description 1300 Haubert StreetBaltimore, MD 212302 Bedrooms |1.5 Bathrooms | $319,900| MLS: MDBA466158 Instantly … [Read More...]

Contact The Pivec Group

Keller Williams Gateway
8015 Corporate Drive | Suite C
Nottingham | MD 21236
Office: 443-692-8800
Broker: 443-318-8800

  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

Specialties

We specialize in Baltimore County, Baltimore City, Carroll County, and Harford County Real Estate Including: Towson, Perry Hall, Parkville, Lutherville, Middle River, Federal Hill, Fells Point, Canton, Westminster, Eldersburg, Abingdon, Bel Air, Fallston.

Maryland Counties

Baltimore County, Harford County, Carroll County, Prince George's County, Montgomery County, Anne Arundel County, Calvert County, Queen Anne's County, Wicomico County, Howard County, Dorchestor County, Cecil County, Allegany County, Talbot County, Kent County, Charles County, St. Mary's County, Garrett County, Caroline County, Worcester County, Somerset County, Frederick County, Washington County.
  • Home
  • Home For Sale
  • Home Values
  • Real Estate Advice

© 2023 · Matt Pivec of Next Step Realty · Customized & Supported by Baltimore Web Design