Real Estate - What does a Foreclosure Entail?

In the field of real estate there is a lot of information to absorb. One thing that you will need to become familiar with is the topic of foreclosure. Foreclosure is a natural part of real estate and it can happen to anyone. While you have likely heard of foreclosure, you might not be familiar with how it works. Here are a few things that you need to understand about foreclosure.

The Process

Foreclosure is how the bank keeps those that buy real estate honest. When you fail to make your payments, the bank will usually send you a warning. After you have been warned, you will receive a notice of default. When you receive a default notice, it will say that you have to pay the entire balance immediately or lose the house. During this period of default, the bank is preparing to evict you with the help of the courts. You can sometimes stop the foreclosure by working with the bank. They may be willing to modify the loan and help you stay in the house. 

Damage

Foreclosure can be very damaging to your credit. It will typically stay on your credit report for around seven years. Even then, it may be difficult to get a mortgage again.

 

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