Steps to Foreclosure

  1. First “Notice” is Filed (i.e., Notice of Default or Notice of Sale)
  2. Sale Date is Set
  3. Sale or Auction is Held - If minimum bid is not met, the property will revert back to the lender and becomes a REO (Real Estate Owned) property

Steps after Foreclosure

  1. Lender assigns property to Asset Manager
  2. Asset Manager lists the property through a pre-approved Agent
  3. Buyer makes an offer, Typically AS IS
  4. Lenders have their own procedures and may vary from one another - (Most lenders accept the highest and best offer with priority on the first decent offer presented) 
  5. Once the bank accepts the offer it goes into escrow
  6. Closing Date is scheduled and transaction is processed - Depending on the Market Conditions, buyers may encounter delays and challenges
  7. Buyer takes ownership

Steps to Short Sale

  1. When payments can not be made to the lender, immediately seek advice from your Connect Agent and other professionals
  2. Borrower or professional contacts the lender about delinquency - First “Notice” is Filed (i.e., Notice of Default or Notice of Sale)
  3. Property is listed at Fair Market Value
  4. Buyer presents offer to homeowner, then it is presented to the lender.  (With a substantial offer, the foreclosure date might be postponed) 
  5. Once accepted, Bank opens escrow
  6. Closing Date is scheduled and transaction is processed
  7. Depending on the Market Conditions, buyers may encounter delays and challenges
  8. The buyer takes ownership