Foreclosure is widespread throughout the United States due to the current economic situation, the growing unemployment and the inability for many people to keep up with their mortgage payments due to the stress of this current financial crisis. However this is not only affecting the United States. The number of foreclosures Vancouver residents are experiencing has been growing as well. This creates a unique opportunity for some in the real estate business or for those who are looking to buy homes and to get them at a fraction of the original cost.
The bank or the lender takes back the property and later resells it in order to recuperate the cost of the original loan. The foreclosure process can go one of four ways. Ideally for the home owner, if they can pay back the amount of the defaulted payments within the period of grace allotted to them, they will remain in possession of their home. This stage is the pre-foreclosure stage. The second option of the process is that during the pre-foreclosure grace period, the home owner will sell their house one their own.
While the end result is that they are not longer in their home, the are able to pay off the default and avoid the negative consequences to their credit score and history. If the borrower does not manage to pay off the default, when the grace period of the pre-foreclosure is over, the home may be purchased at a publicly held auction. The fourth possible outcome for a foreclosure is that the lender or the bank gains ownership and title to the property.
The bank will then have the intention of reselling the house. Sometimes the bank is the third party buyer at the public auctions. In all, banks and lenders to not want to re-possess houses, and many are willing to offer help and guidance, such as that first pre-foreclosure grace period. Home owners do have many opportunities to save their houses, provided that they are able to afford to do so.