A real estate-owned property is one potential outcome for a home in the foreclosure process. If you are facing foreclosure, your home could end up as a real estate-owned property. It’s understandable that you might have questions about real estate-owned properties and how they work.
Foreclosure is a big deal. If you’re facing foreclosure on your home, it’s recommended that you work with an attorney to explore all your options to stop foreclosure and keep your home and prevent it from becoming an REO property.
Contact Joshua Denbeaux today to learn more about foreclosure and how we may be able to help you.
What Is A Real Estate Owned Property?
A real estate-owned property (REO) is a lender-owned property that fails to sell during foreclosure or auction. The mortgage lender owns REOs.
As a homeowner facing foreclosure, understanding how your property could become an REO can help you better understand what happens to your equity and if you’ll be on the hook for even more money.
If the property is unable to sell, you may also have to pay deficiency judgments further down the road when the property finally does sell.
How Does A Property Become An REO?
A property becoming an REO involves many steps. The first step is for the borrower to default on their mortgage.
After the borrower goes into default and stays in default for a period of time, the home enters into foreclosure. In the process of becoming an REO, the property has to be foreclosed.
During the foreclosure process, homeowners have options to save their homes from foreclosure.
Once a property is foreclosed on, it is typically sold at a public auction. If the home doesn’t sell at the auction, the lender can take ownership of it. This is when a property would be considered REO.
What Happens To A Real Estate Owned Property?
When a property becomes REO, the homeowner has to move out even though it hasn’t been sold. In New Jersey, borrowers cannot remain in the home while the lender owns it.
The lender will hold a real estate-owned property in their portfolio and can sell it at any time. Your lender may have an REO specialist who will manage REO properties.
REO specialists manage the properties, review any offers, prepare regular reports on the property status, and track down deeds for the property. Even though you’re no longer in your home, your lender may still contact you if they have any issues with paperwork related to the home.
Contact a Foreclosure Attorney Today
Your home could become a real estate-owned property if you’re currently facing foreclosure. It’s important that you understand all potential outcomes of foreclosure.
There are a lot of different outcomes and options for the foreclosure process, and it’s understandable that you may be confused. You should educate yourself on all your potential outcomes and options as you go through foreclosure.
A foreclosure attorney can help you learn about foreclosure proceedings and possible options to avoid foreclosure.
Contact Denbeaux Law today to learn more about the foreclosure process and how we may be able to help you avoid foreclosure on your home.
