Foreclosure Process Steps

If you are looking to purchase a home anytime soon, it is very important for you to understand the real estate foreclosure market. It is important to know how the foreclosure market works and what the process is. Once you understand the foreclosure flow, you can be one of those buyers that can snag a great deal.

Another point to understand is that just because a home is a foreclosure home does not mean that it is a better deal than a regular home that is active on the market. Foreclosure homes can sometimes be worth less that what the bank is asking or less than it sells for at auction.

Here are the steps to the typical foreclosure:

1. The homeowner stops paying their minimum mortgage payment.

2. Lien holder(s) file a notice of default typically after 90 days

3. Notice of sale date. Lien holder gives notice of when they will auction the property.

4. Foreclosure Auction.

5. If the home does not sale at the auction, it is “bought” back by the bank and now is considered an REO or bank owned property.

6. Bank will typically re-list the property on the MLS with their REO agent in the area.