Current South Bay Foreclosure Listings
all the news regarding sub prime lending and an
ever increasing number of forclosures and auctions, it's good to
understand what foreclosures are, the reality of buying a home in
the South Bay, and how to go about trying to accomplish it. Please
read through our foreclosure information pages to get some valuable
is a Foreclosure?
is the legal proceeding in which a bank or other secured creditor
sells or repossesses a parcel of real property (immovable property)
due to the owner's failure to comply with an agreement between the
lender and borrower called a "mortgage" or "deed
of trust". Commonly, the violation of the mortgage is a default
in payment of a promissory note, secured by a lien on the property.
When the process is complete, it is typically said that "the
lender has foreclosed its mortgage or lien."
of foreclosure is lengthy and the timeframes for when the lending
institution begins the process vary from state to state. Other factors,
such as the increasing availability of personal loans for owners
facing foreclosure, present homeowners with foreclosure avoidance
options. Websites which connect individual borrowers and homeowners
to individual lenders are increasingly used as mechanisms to bypass
banks while meeting payment obligations for mortgage providers.
The increase in the number of foreclosures in the United States
has led to more loan listings which are designed to forestall or
is a Short Sale?
A short sale
is when a lender accepts a discount on a mortgage to avoid a possible
foreclosure auction or bankruptcy. Instead of buying from a seller,
you are purchasing the property directly from the lender for a discount.
For example: A homeowner, who is facing foreclosure, has an existing
first mortgage of $800,000. You write an offer to the lender for
$725,000, which is accepted as full payment for the loan. This is
a short sale. Why are they willing to take such a discount? Several
reasons. First of all, banks do not like excess inventory and bad
loans on their books; therefore, if they see an opportunity where
they can sell the property without a huge loss, they will do it.
Secondly, lenders know they could lose a lot more money if the property
goes to auction. There are so many fees involved if the property
goes to auction, that they would be better off taking the discount
beforehand and be finished with the headache of it all.
short sale information