Foreclosure Property Information
What is a Foreclosure?
Most people by now know what a foreclosure is. For those who don't, here is a quick rundown. A Foreclosure is when a home owner who has taken out a loan to purchase a home falls behind on the mortgage payment. The Mortgage note is secured by the real property ( Real Estate). Once the loan is in default the bank has the right to start proceedings to recover the loan amount by taking pack the property and selling it.
The bank will usually try to sell the home at the court house steps. Many times the bid is not enough to cover the loss so the bank buys it back to try to sell it on the open market. This is now known as a REO property (Real Estate Owned). One thing to know is that if your property is not sold for enough to cover the lender’s loan, a deficiency judgment could be placed against you. A foreclosure and a deficiency judgment will make it hard to secure another loan in the future.
1 One way you can avoid the foreclosure process is a deed in lue. This is where you have fallen behind on the mortgage and can't get back above water so you voluntarily turn over the deed of the property to avoid the foreclosure process and save the bank the cost to come after you. Check with your state and consult your attorney.
2. Second way to avoid a foreclosure is to do a short sale on the property. A short sale is where you owe more on a property than it is worth so you ask the bank to take a loss on the property.
Gatlinburg, Pigeon Forge, Sevierville, and Wears Valley has had their share of foreclosures but this market is doing better than most.