Foreclosure Process: Understanding And Profiting
From It
Author: Eric Mabo

Foreclosures have been steadily increasing over the past few
months in most American cities. Some of the cities with the
highest number of foreclosures include Atlanta Los Angeles,
Miami, Detroit, Phoenix and many others. There are many
different reasons why homes go into foreclosure. One of the most
important reasons today is the day so called sub-prime mortgage
mess. This occurred because many banks relaxed their lending
guidelines. A lot of people who would otherwise not be able to
buy a home were able to buy a home over the past few years
because of these relaxed guidelines. Unfortunately, most of
these people bought homes with mortgages that they could not
afford to pay. A lot of these mortgages were adjustable rate
mortgages. The payments on these loans were initially very low
however, the loan payments increased dramatically as the
interest rates adjusted upwards. So these homebuyers could not
afford to pay and so had to go into foreclosure.

When a homeowner is not able to pay his or her mortgage, the
bank may decide to take back the home. This is also called a
foreclosure.

Different states have different guidelines on how banks can
foreclosure on a property.

This process is very short and straightforward in the state of
Georgia. It is much along that in many other states. There are
two types of foreclosure processes: one is a judicial process,
and the other is non-judicial. Some states like Georgia use the
non-judicial foreclosure process. This non-judicial process is
very fast. A homeowner in Georgia may lose their home in as
little as 30 days if they fail to pay a mortgage on time.

The bank merely has to go to cost and declared that the mod
gauge these view immediately. When this happens, the home owner
may come up with the money in order to stop the foreclosure.
This is very difficult because many of these home owners are
already facing a lot all financial difficulties. The bank
publishes a note these in the Loki newspaper that they are ready
to foreclose on the home. The bank is required by law to publish
this no tears in the paper for at least four weeks before the
actual foreclosure date. If the home owner does not come up with
the money to pay the loan within this time the bank has the
right to go to court and set a property at the court steps to
the highest bidder. Some banks succeed in selling the home
quickly, however most of them would end up buying back the
property. This is now called an REO property.

The bank now recruits a real estate broker to list and sell
their property to any interested buyers. These homes are
initially listed at market value. The bank will eventually
discount the property, if they are not able to sell it at fair
market value. This represents a good bargain for a savvy home
buyer. This savvy homebuyer really needs to work with a real
estate agent who knows how to locate these discounted
properties. And remember not all foreclosures are good deals.


About The Author: Eric Mabo is an Atlanta foreclosures Expert.
He helps people find real estate deals.
http://www.doyenrealty.com