Florida foreclosures are lawful proceedings in which banks or other secured creditors sell or repossess real estate property due to the owner's inability to conform to the contract between the lender and borrower known as "mortgage" or "deed of trust." Usually, the infringement of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the procedure is complete, it is normally said, "the lender has foreclosed its mortgage or lien."
In order to avoid foreclosures, homeowners in Florida can opt to for pre-foreclosures. This occurs when borrowers sell the property on their own after the foreclosure process has begun, but before the property has in reality gone into foreclosure. The major benefit of this is that borrowers can avoid the trouble of having a foreclosure judgment on their credit record. This alternative will probably be available for borrowers who have equity in the property. By selling the property on their own, homeowners can then pay off the mortgage, and pocket the difference if there is equity left behind. Borrowers can employ the services of an attorney or other experienced professional help in negotiating the sales contract.
Foreclosure auctions are the riskiest category of foreclosure sales for novices to get involved with. This is for the reason that many of the people at auctions are investors who are experts at dealing with properties at auctions. Frequently creditors also participate in the auctions as well, to prevent the property from being sold at a low price that would result in a loss for lenders. Roughly eighty percent of auctions end with the lender retaining the property.
Another type of foreclosure sales is real estate owned sales. These deals entail the least amount of risk; however, they also offer the lowest potential reward. Banks or other lending institutions own these properties because they are done with the foreclosure process. These properties will at times have necessary repairs made prior to being sold, though this is not always the case as these properties are usually sold on "as is" basis.
Foreclosures provides detailed information on Foreclosures, Bank Foreclosures, Foreclosure Listings, Foreclosure Homes and more. Foreclosures is affiliated with Stop Foreclosure Loans.
Source: www.ezinearticles.com
