| A foreclosure is an action taken against a property | | | | the case, especially tax sales. If the property is " |
| owner by seizure of his/her real property. It can be | | | | free and clear" of other liens then it is solely based |
| for many reasons. The main cause is delinquent | | | | on the taxes, penalties and interest due. I know of |
| payments on a mortgage. The mortgage company or | | | | some that have sold for less than a few thousand |
| second and even third mortgage holders contact the | | | | dollars. |
| owner, then the trustee (usually an attorney) to | | | | The owner has the right to cure the default right up |
| begin the process. If it is VA guaranteed or FHA | | | | to the very last minute before the sale. A pay off |
| insured, many times they offer assistance or | | | | statement is prepared including the delinquent |
| alternatives. Then the appraisal is ordered to | | | | payments, trustee fees (usually 5 % of the remaining |
| determine fair market value. | | | | balance of the loan), processing fees, property |
| It can also be for medical bills, delinquent taxes and | | | | inspections, appraisal and any other thing the |
| other liens, even credit cards. "The purpose of this | | | | mortgage company can think of. The problem is not |
| foreclosure is for collection of a debt" is usually | | | | only coming up with the funds but knowing what |
| printed in the legal section of the newspaper as well | | | | charges are and if they are legitimate. I have only |
| as some other publications, such as local business | | | | heard of lawyers and accountants challenging |
| papers and law papers. | | | | mortgage companies on over or false charges. Please |
| Many people feel that they can purchase these | | | | rate and tell friends. |
| properties for almost nothing and sometimes that is | | | | |