How Do Foreclosures Work?

The 3 most commonly asked foreclosure questions
March 8, 2021
By Miguel Manzanares
How does the foreclosure process work? Do I have to evict the homeowner? How many foreclosures are there in my neighborhood? Learn all this and more
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Good morning, good afternoon and good evening, wherever you just so happen to be reading this. Thank you and welcome to Flagship Real Estate Group!

Today, we’ve got some pretty great topics to dive into. And just to give you a little bit of a heads up on what we do around here – a lot of you already know from our website, and from working with us in the past – we specialize in foreclosures. We assist homeowners who are in foreclosure and we help them negotiate their mortgages, along with everything that comes with that.

As a product of that, for the past five years we have also been really helping buyers get foreclosures, helping them go to auctions, helping them get foreclosures before they go to market – so that’s really been our specialty. We’ve decided to blog about it and give some tools and information that might help you guys out there.

Just a couple of questions to introduce you to the world of foreclosures.

  • How does the foreclosure process work?
  • Do I have to evict the homeowner?
  • How many foreclosures are there in my neighborhood?
Let’s go ahead and get started 
 

HOW DOES A FORECLOSURE WORK? 

So, we’ll start with the number one question, how does a foreclosure work? And the short answer to that is, somebody just gets behind on their mortgage for whatever reason. Life is life, and things kind of just happen. When that happens, there are notifications that go out to the county, go out to the state, and let everybody know that this property is in foreclosure. The reason is so that the bank can start their repossession process, and they have to give public knowledge to the whole world what’s going on.

When that happens, people like us find out about it, so at that point in time, we start to gauge the property’s situation and help you as the possible buyer to assess the situation in parallel with assessing your wants, needs and goals and see if we can align that up with the particular situation that’s going on with the foreclosure.

That’s the of the beginning part of how the foreclosure works. The next step of the process happens when the bank sends out notification to the homeowner, to let them know and give them an opportunity to come back on the foreclosure, to relieve the debt, to cure the debt in some way, shape or form. This is called modification process, which will take somewhere between three and six months.

Now if the homeowner goes through the modification process, and they get to some successful modification, the situation will be salvaged for them.

However, if the modification doesn’t work, then the property goes to go to auction, and that’s where we can help you guys out. One of our specialties is getting the property prior to going to auction, so there’s that window that you have right there, between the property failing on the modification side, and then going into the foreclosure side that you’ve got your opportunity to get the property. That is where we specialize in, helping you get the property in that little window. After that point it goes to auction where it is going to gavel down.

DO I HAVE TO EVICT THE HOMEOWNER?

Now to our second question. Once somebody purchases the property at auction or through the bank, do I have to evict the homeowner? And the short answer is no. You don’t really have to evict the homeowner. We haven’t done too many evictions. Don’t get me wrong, we got a couple going on right now. It’s just kind of the nature of the beast. But at the same time, they’re just human beings. It’s all just people that you got to work out a deal with, so that’s the key. That’s the secret right there. Going in there and dealing with the homeowner and understanding their particular situation and honestly, just being empathetic about it. Let’s just be realistic about it. You’ve got a good property right now and they need a place to stay. So let’s just kind of work out a happy medium, and to be honest with you 99.9% of the time, that’s what we’re able to work out. So that’s the best way to do it.

HOW MANY FORECLOSURES ARE THERE IN MY NEIGHBORHOOD?

And then number three – how many foreclosures are there in my neighborhood? That’s the question. That’s what everybody wants to know, and that’s where we come in.

Give us a holler at 1-800-695-8930 fill out the form below, or visit our foreclosure listing exchange. What we’ll do is we’ll set up a time to come into the office (either virtually or physically), we’re right here on the corner of Encinitas Boulevard and Quail Gardens, we’re really easy to find. We can sit down in the office and go over all the properties on the big screen here, or we can do a virtual appointment.

Either way we can go over all the inventory that’s going to line up with you your particular situation. Whether you’re an investor and looking to make a certain margin or whether you’re a first-time homebuyer. Sometimes first-time homebuyers think they need all cash to purchase a foreclosure, but you can totally buy one with the loan. We have first time buyer programs, we work with all the major banks in town, we have something for everyone.

We will sit down and go over your particular situation, your wants, needs and goals, assess the market and come up with some kind of game plan.

That’s just about it for today, to inform you guys a little bit about what we do. So give us a holler at 1-800-695-893, fill out the consultation form, or visit our foreclosure listing exchange below and we can get things going. Or, come on in! Sit down with us or do a virtual meeting. We’re super COVID friendly around here, so don’t be afraid to come in. We wipe everything down, we’re super compliant.

Enjoy the information everyone, thank you for reading! good to meet you all, and we’ll talk with you soon!

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