Discover the complete process from start to finish of a bank’s role in the foreclosure process at ForeclosureDeals.com. Foreclosure listings and information is our business.

1. Bank’s Role in the Foreclosure Process Understanding bank foreclosures and how to deal with mortgage institutions

2. Home Financing Most homes and properties are obtained by borrowing money from a lending institution The bank holds the deed to the property as collateral against payment in full If mortgage payments fall into arrears, the bank can retrieve full ownership of the property through the foreclosure process

3. Reasons Homeowners Face Foreclosure Increase in an adjustable interest rate Excessive debt Medical emergency, illness, or death in the family

4. Reasons Homeowners Face Foreclosure Job loss, reduction in work hours or pay, or unexpected promotion denial Divorce and/or the loss of a second income Unexpected major home repairs

5. Initiating the Foreclosure Process A bank can begin the foreclosure process after only one delinquent payment Most mortgage companies will present delinquent homeowners with several warnings before actually filing with the court in order to avoid foreclosures

6. Notice to Accelerate After the payment is sixty days past due, a Notice to Accelerate will be issued by the bank A date will be set to pay the delinquent balance and strong warnings will be made concerning actual foreclosure

7. Demand Letter If payment is not made by the due date set in the Notice to Accelerate, the bank will hire an attorney who will issue a Demand Letter This is the final warning from the bank to pay the amount due before a formal foreclosure request is presented to the court

8. Notice of Default The homeowner does not respond to the Demand Letter, they will receive a Notice of Default stating a notice of foreclosure has been issued with the court In most cases, the homeowner will have a month or less to respond to this judgment This is the last chance to settle the delinquent amount before actual foreclosure

9. Notice of Sale If the homeowner does not respond to the Notice of Default within 20 to 30 days, they will receive a Notice of Sale This step normally occurs when payments are in arrears three or more months A Notice of Sale provides the actual date whereby the property will be sold at a Sheriff’s auction

10. Communication is Key In order to avoid foreclosure, communication with the bank is essential Open communication with the lending institution should begin as early as possible, even before missing the first payment Most mortgage holders will work with homeowners who make an effort in order to avoid foreclosures

11. Reasons Why Lenders Do Not Want to Foreclose Foreclosures become bank owned properties, or Real Estate Owned properties (REOs), making the bank responsible for repairs and upkeep until sold

12. Reasons Why Lenders Do Not Want to Foreclose Banks are required to set in reserve an amount of money which is two times or more the value of each bank owned property Shareholders could be displeased if required quarterly statements reveal too many defaulted loans and/or foreclosed homes

13. Options to Avoid Foreclosure Negotiate a repayment plan, called forbearance Negotiate an interest rate change or freeze, called note modification

14. Options to Avoid Foreclosure With sufficient equity, an increased loan balance can be negotiated, called a refinance If qualified, a government loan can be obtained to repay missed payments, called a partial claim

15. Options to Avoid Foreclosure Consider selling the home if convinced further payments cannot be met If there is no equity in the home, consider a short sale whereby the homeowner proves they are in a distressed financial situation and agrees to sell the home for less than what the property is worth Consider bankruptcy

16. Lucrative Investments Investing in bank owned homes can be a lucrative practice Foreclosed homes can often be obtained for below appraised values and resold, for a substantial profit Some banks are required to write off a set amount of losses each month, part of which can be losses realized through cheap sales of foreclosed properties

17. Foreclosure Opportunities for Investors Seek out distressed homeowners and offer to negotiate short sales with their mortgage companies Check bank foreclosure listings and government foreclosure listings for properties offered at reduced amounts

18. Understand Property Types and the Laws Governing Them Information on the types of distressed properties, such as pre-foreclosure, foreclosure and Real Estate Owned (REO), is critical Understanding the various laws governing them from state to state is also critical

19. Trusted Source for Foreclosed Investment Properties Foreclosuredeals.com is a trusted and thorough source for information concerning bank foreclosures, property types and the laws pertaining to them in each state Foreclosuredeals.com is also a bountiful source of bank and government foreclosure listings countrywide

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