Definition of foreclosure according to Investopedia is a legal process where a lender seizes a property, evicts the homeowner and sells the home after the homeowner cannot make full principal and interest payments on his mortgage as managed in the mortgage contract.
In case a property fails to sell at a foreclosure auction or if it never went through one, lenders usually will take ownership of the property and may add it to an accumulated portofolio of foreclosed properties which is also called as real-estate owned (REO). Properties that are foreclosed are usually easily accessible on the website of the banks that foreclose the home. Those properties can be so attractive to the investors of real estate because in several cases, banks sell them at a discount to their market value that in turn negatively affects the lender. So, how about foreclosure in Zillow?
The things that will happen in a foreclosure is various and it depends on the state law, but we can break it down into 5 stages.
- Missed payment
It begins when the borrower cannot make mortgage payments punctually. So, if you are in this situation, it is better that you talk to your lender as soon as possible.
- Public notice
If you miss payment about three or six months, then the lender will record a public notice with the County Recorder’s Office which indicates that the borrower has defaulted on the mortgage.
If the borrower receive a NOD from the lender, he gets into a grace period that is known as pre-foreclosure. Throughout this period, the borrower is able to work out an arrangement with the lender through a short sale or they can pay the outstanding amount owed.
In case the default is not remedied by the prescribed deadline, the lender or the representative will set a date for the home to be sold at a foreclosure auction.
In case the third party does not buy the property at the foreclosure auction, the lender will take the ownership of it and it will be what is known as a bank-owned property or REO (Real Estate Owned).
Perhaps you want to purchase a foreclosure. In Zillow, you can do that and even you can find pre-foreclosure and bank-owned properties freely. You just need to access the website of Zillow and then enter your search area and click “Listing Type”. After that, choose “Foreclosures” in the “For Sale” section. If you want to see the available foreclosure in the future, you can choose “Foreclosed” or “Pre-Foreclosure” in the “Potential Listings” section.
Foreclosure can be so frustrating for the borrowers. So, if you do not want to experience foreclosure, you need to do several things, such as:
- Contact foreclosure relief programs
- Talk to your lender
- Time for a gut check
- Get counseling
- Organize your debt
Well, for getting more information related to foreclosure in Zillow, you can access the website of Zillow and choose the “Foreclosure” section.