|
Avoid Foreclosure! Understanding what a foreclosure is and the process it takes is the first step.
A foreclosure is the process by which a promise to repay a loan or debt secured by a deed of trust is enforced against real property ( structure, home and/or land) .
At the conclusion of foreclosure proceedings at the courthouse steps called a "trustee sale", if there is not a bid above the minimum amount determined by the lender, the property becomes an REO ( Real Estate Owned by the bank).
These REO properties then are prepared for market through property preservation. The preservation includes securing of the property including rekeying, trashout, winterization, cleaning, yard cleanup, and some repairs. Repairs are performed most times only if the seller determines it is needed to keep the property from degrading such as a roof leak, etc. The banks or asset managers also look at the listing agent's recommended repairs for each specific property. They look at a cost benefit analysis to determine if certain repairs will likely increase value beyond the expense of the repair or shorten the marketing time or DOM (days on the market).
|
