Bank’s Role in the Foreclosure Process<br />Understanding bank foreclosures and how to deal with mortgage institutions<br />
Home Financing<br />Most homes and properties are obtained by borrowing money from a lending institution<br />The bank hol...
 Reasons Homeowners Face Foreclosure<br />Increase in an adjustable interest rate<br />Excessive debt<br />Medical emergen...
Reasons Homeowners Face Foreclosure <br />Job loss, reduction in work hours or pay, or unexpected promotion denial<br />Di...
Initiating the Foreclosure Process <br />A bank can begin the foreclosure process after only one delinquent payment <br />...
 Notice to Accelerate<br />After the payment is sixty days past due, a Notice to Accelerate will be issued by the bank<br ...
Demand Letter<br />If payment is not made by the due date set in the Notice to Accelerate, the bank will hire an attorney ...
Notice of Default<br />The homeowner does not respond to the Demand Letter, they will receive a Notice of Default stating ...
 Notice of Sale<br />If the homeowner does not respond to the Notice of Default within 20 to 30 days, they will receive a ...
Communication is Key<br />In order to avoid foreclosure, communication with the bank is essential<br />Open communication ...
Reasons Why Lenders Do Not Want to Foreclose<br />Foreclosures become bank owned properties, or Real Estate Owned properti...
Reasons Why Lenders Do Not Want to Foreclose<br />Banks are required to set in reserve an amount of money which is two tim...
Options to Avoid Foreclosure<br />Negotiate a repayment plan, called forbearance<br />Negotiate an interest rate change or...
Options to Avoid Foreclosure<br />With sufficient equity, an increased loan balance can be negotiated, called a refinance<...
Options to Avoid Foreclosure<br />Consider selling the home if convinced further payments cannot be met<br />If there is n...
 Lucrative Investments<br />Investing in bank owned homes can be a lucrative practice<br />Foreclosed homes can often be o...
Foreclosure Opportunities for Investors<br />Seek out distressed homeowners and offer to negotiate short sales with their ...
Understand Property Types and the Laws Governing Them<br />Information on the types of distressed properties, such as pre-...
Trusted Source for Foreclosed Investment Properties<br />Foreclosuredeals.com is a trusted and thorough source for informa...
For more Information:<br />http://twitter.com/fcdeals<br />http://www.foreclosuredeals.com/wp/feed/<br />http://www.linked...
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Banks Role in the Foreclosure Process

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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.

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Banks Role in the Foreclosure Process

  1. 1. Bank’s Role in the Foreclosure Process<br />Understanding bank foreclosures and how to deal with mortgage institutions<br />
  2. 2. Home Financing<br />Most homes and properties are obtained by borrowing money from a lending institution<br />The bank holds the deed to the property as collateral against payment in full<br />If mortgage payments fall into arrears, the bank can retrieve full ownership of the property through the foreclosure process<br />
  3. 3. Reasons Homeowners Face Foreclosure<br />Increase in an adjustable interest rate<br />Excessive debt<br />Medical emergency, illness, <br /> or death in the family<br />
  4. 4. Reasons Homeowners Face Foreclosure <br />Job loss, reduction in work hours or pay, or unexpected promotion denial<br />Divorce and/or the loss of a second income<br />Unexpected major home repairs<br />
  5. 5. Initiating the Foreclosure Process <br />A bank can begin the foreclosure process after only one delinquent payment <br />Most mortgage companies will present delinquent homeowners with several warnings before actually filing with the court in order to avoid foreclosures<br />
  6. 6. Notice to Accelerate<br />After the payment is sixty days past due, a Notice to Accelerate will be issued by the bank<br />A date will be set to pay the delinquent balance and strong warnings will be made concerning actual foreclosure<br />
  7. 7. Demand Letter<br />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<br />This is the final warning from the bank to pay the amount due before a formal foreclosure request is presented to the court<br />
  8. 8. Notice of Default<br />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<br />In most cases, the homeowner will have a month or less to respond to this judgment<br />This is the last chance to settle the delinquent amount before actual foreclosure<br />
  9. 9. Notice of Sale<br />If the homeowner does not respond to the Notice of Default within 20 to 30 days, they will receive a Notice of Sale<br />This step normally occurs when payments are in arrears three or more months<br />A Notice of Sale provides the actual date whereby the property will be sold at a Sheriff’s auction<br />
  10. 10. Communication is Key<br />In order to avoid foreclosure, communication with the bank is essential<br />Open communication with the lending institution should begin as early as possible, even before missing the first payment<br />Most mortgage holders will work with homeowners who make an effort in order to avoid foreclosures<br />
  11. 11. Reasons Why Lenders Do Not Want to Foreclose<br />Foreclosures become bank owned properties, or Real Estate Owned properties (REOs), making the bank responsible for repairs and upkeep until sold<br />
  12. 12. Reasons Why Lenders Do Not Want to Foreclose<br />Banks are required to set in reserve an amount of money which is two times or more the value of each bank owned property<br />Shareholders could be displeased if required quarterly statements reveal too many defaulted loans and/or foreclosed homes<br />
  13. 13. Options to Avoid Foreclosure<br />Negotiate a repayment plan, called forbearance<br />Negotiate an interest rate change or freeze, called note modification<br />
  14. 14. Options to Avoid Foreclosure<br />With sufficient equity, an increased loan balance can be negotiated, called a refinance<br />If qualified, a government loan can be obtained to repay missed payments, called a partial claim<br />
  15. 15. Options to Avoid Foreclosure<br />Consider selling the home if convinced further payments cannot be met<br />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<br />Consider bankruptcy<br />
  16. 16. Lucrative Investments<br />Investing in bank owned homes can be a lucrative practice<br />Foreclosed homes can often be obtained for below appraised values and resold, for a substantial profit<br />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<br />
  17. 17. Foreclosure Opportunities for Investors<br />Seek out distressed homeowners and offer to negotiate short sales with their mortgage companies<br />Check bank foreclosure listings and government foreclosure listings for properties offered at reduced amounts<br />
  18. 18. Understand Property Types and the Laws Governing Them<br />Information on the types of distressed properties, such as pre-foreclosure, foreclosure and Real Estate Owned (REO), is critical<br />Understanding the various laws governing them from state to state is also critical<br />
  19. 19. Trusted Source for Foreclosed Investment Properties<br />Foreclosuredeals.com is a trusted and thorough source for information concerning bank foreclosures, property types and the laws pertaining to them in each state<br />Foreclosuredeals.com is also a bountiful source of bank and government foreclosure listings countrywide<br />
  20. 20. For more Information:<br />http://twitter.com/fcdeals<br />http://www.foreclosuredeals.com/wp/feed/<br />http://www.linkedin.com/company/foreclosure-deals<br />http://www.facebook.com/ForeclosureDeals<br />http://www.foreclosuredeals.com/<br />

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