Essay Preview: Foreclosures
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Foreclosures occur when an owner of a house decides, or is forced to shut down their home due to not being able to pay their mortgage. The bank is allowed to take the property of the home to sell or auction off to another person or business. After getting foreclosed, the property belongs to the lending institution, until it is auctioned off to another home owner’s hand. You normally get foreclosed after not paying your mortgage for an average of a two to three month period. You can buy a foreclosed home even if you have no money and bad credit. You don’t even need a loan to do so. Some things to avoid getting your house foreclosed is to definitely not ignore the letters that are sent to you. Also, get a hold of your lender as soon as you think you may be in the process of getting foreclosed or even when you are starting to have troubles paying your mortgage. You can also use sell a few of your assets, like an extra car, old furniture, or maybe even some jewelry. Also, handle your money wisely. Only spend your money on items you need like your bills, and groceries, etc. Don’t use up all your money on things you don’t need until you know you aren’t being foreclosed. The process of getting foreclosed takes a long time. It goes from state to state so it takes a while until the people get your foreclosure paperwork. It starts out when the home owner doesn’t pay the payments before the given timeline. There are many reasons, or causes, to this though. Some reasons for not paying could be unemployment, divorces, medical bills, or even deaths. If you get a loan from a bank to pay for your house, that is a very easy way to become foreclosed and a very hard thing to pay back. You don’t have enough money to pay for your house; therefore you won’t have enough money to pay back the loan, with interest. When a bank goes off to auction the foreclosed house, they usually start the bidding at the price that is owed to the bank, rather than paying the complete, original price for it. It’s a lot cheaper to go through a foreclosure bidding to find a house rather than to go out to a real estate and finding a brand new house. Foreclosures are so frightening too. Not all foreclosed homes are good though. Pre-foreclosed homes could be a better purchase

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Foreclosed House And Owner Of A House. (April 11, 2021). Retrieved from