Dale Mundi Bank sales
What Are Bank sales?(Power of sale)
How a Home Becomes a power of sale #dale #mundi
When a borrower takes out a mortgage loan from a bank, the loan is typically secured by the property being bought. Before the loan is final, terms are set to outline how monthly payments will be made to repay the loan. If the borrower/owner doesn’t met this contractual obligation they are in default on the loan. At this point the property that was put up as collateral to secure the loan goes into foreclosure.
In other words, it will likely become a power of sale, or REO, property.
There is long process for it,Bank foreclosure doesn’t occur if a borrower is a few days late making a payment. How soon a bank can initiate a foreclosure after non-payment depends on what state the property is in. Typically, foreclosure is initiated after 90 days of delinquent payments.
When a home is in threat of foreclosure (after 1 or 2 missed payments), the bank will contact the mortgage holder by way of a ‘breach of contract’ letter warning them that they could soon go into foreclosure. If the borrower pays the amount owed in full, plus late fees, then the home is no longer in threat of default. The bank may also be open to adjusting the terms of repayment so that the borrower doesn’t go delinquent again. #dale #mundi #bank sales
However, if no agreement can be reached and the borrower can’t make the missed payments, the home will proceed into foreclosure and the lender will then begin the process of selling the home at a foreclosure auction. If the bank can’t find a buyer at auction, the bank then takes control of the property and it officially becomes a bank owned home. #dalemundi #bank sales.
Dale mundi has been working in Ontario from long time and has good experience about real estate market .#Dale #mundi has good market knowledge and Resources & Connections, if you are looking for a Good Realtor then contact us .