A house foreclosure happens when an owner defaults on the mortgage payments for the property. Property in foreclosure is often referred to as distressed property because the owner is in financial distress and has usually missed several mortgage payments. The owner's financial distress can be caused by a variety of unfortunate circumstances, but it often results in a potential opportunity for SBD Housing Solutions to help the owner.
STAGES OF FORECLOSURE
The foreclosure process doesn't just happen overnight. A typical foreclosure timeline can extend more than three months. The different stages of foreclosure offer different types of opportunities for the seller to remedy the situation. Although this is a very brief overview of the legal process, we hope that this gives you a clear picture of the typical timeline of events.
STAGE 1 - PRE-LIEN
For SBD Housing Solutions, buying a property in the pre-lien stage is the easiest of all. Sometimes homeowners have been struggling to make their mortgage payment but are not far enough behind to actually warrant any legal action. SBD Housing Solutions buys houses in this stage directly from the homeowner, thereby saving the owner the typical 6% real estate commission expense. Plus we buy the homes in “As-Is, Where-Is” condition, eliminating all the potential headaches of trying to sell a home in need of repair. This is the classic win-win scenario so that the homeowner does not get foreclosed on.
STAGES 2 & 3 - PRE-FORECLOSURE
Buying a property in pre-foreclosure involves approaching the owner in default with an opportunity to escape the situation free of mortgage debt and without a foreclosure on his or her credit history. For SBD Housing Solutions, pre-foreclosure sales are very time sensitive. If you are in this stage you must call immediately for a free, no obligation analysis today! We offer plans that can pay off all your existing debt, thereby stopping the pending bankruptcy or foreclosure and saving your credit. The new wave of short sale activity has swept the nation through the downturn beginning in 2007. We are acutely aware of the rights of the homeowners and the opportunities that these scenarios represent
STAGE 4 - FORECLOSURE SALE
If the default is not resolved by the end of the pre-foreclosure period, SBD Housing Solutions can attend a public auction scheduled by a Trustee, on behalf of the lender. At this stage we are required to pay in cash and may have to bid against other investors looking to buy the property. However there are items that we are the only bidder and get the home with no competition. The opening bid is set by the Lender, but does not necessarily equal the amount owed. Large lending institutions are at the point of having larger asset management departments than lending departments! You can imagine the overhead associated with dealing with thousands of properties across America, hence the need to dump the houses prior to the traditional foreclosure method of taking a property back and selling it themselves.
STAGE 5 - OWNERSHIP TRANSFER
Unless the sale is postponed or cancelled, ownership transfer occurs immediately.
SUMMARY
Foreclosure is a very serious blemish on the consumers credit score and we take great pride in stopping these damning proceedings from occurring. We look for win-win situations and guarantee a quick response to any homeowner in distress. Swift and decisive action is required whatever phase of foreclosure you find yourself in so don’t delay and we encourage all homeowners to simply explore and understand ALL your options before making a decision.
We know foreclosure law. We use this knowledge of the legal proceedings to preserve homeowner’s dignity, improve the value of neighborhoods, and acquire great real estate deals in the process.
