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    Foreclosure action how does it work

    By cooldude | December 23, 2014

    Foreclosure actionThe foreclosure process starts after you fail to pay the money you owe to a bank. So the property you bought with the money lent by the bank is sold and the money goes to the bank. You are not likely to be able to sell your property at a good price because the price of your property will be set in such a way so that it can be sold very quickly. In such a case the price of your house will be less than its actual market value. You should understand that the individual who is about to buy your property will know that it has been foreclosed so naturally they would be willing to pay much less than they would for a new house.

    You should understand that the bank will not foreclose your house immediately after you fail to pay the debt. It will give you some time after which the foreclosure process will start. During that time, the bank will become the owner of your home until the property is sold. You can expect that the property will definitely be sold because the Bank won’t make much profit by becoming owner of properties. You can expect that the bank will complete the foreclosure as fast as it can because the sooner it is able to recollect the debt the better it is for them. It is certain that you won’t be able to get the right price for your home so you can understand that the bank benefits from the whole process and you don’t. You should understand that the individual who buys your property for a lot less than what it is actually worth is also a gainer in the process.

    The Foreclosure process: You can pay the bank the money each month before or on the due date. If you fail to pay the money before the due date then the bank will give you few days to pay the money. If you manage to pay the money within that time then there would not be any problem but if you fail to do that that then the bank will send you a notice in which it is normally stated that you should make the payment as soon as you can, otherwise proper action would be taken. If you manage to make the payment in this condition then the bank won’t take any further action. If you’re paying the money at this point then you’ll also have to pay the bank a late fee. But if you fail to pay the money even after this the bank will consider you a defaulter and send you a notice in which it will be stated that if the debt is not cleared right away then the bank will foreclose your house. If the debt is still not cleared then the bank will send you a notice saying that the foreclosure process has been started by the bank. It will also contain the date on which the property will be sold. It will also contain detail information about your debt.

    On the foreclosure date, your property will be auctioned. Whoever will pay the highest price will become the owner of your property. The bank will place the opening bid which will be the exact amount you owe. After the property is sold, you will have to move out of the house.

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