Short sale process takes quite sometime before it is being sold in the sheriffs auction . But it is still a good opportunity for the real estate investor to get better deals. Though every state has different processes when it comes to short sale investing but still they follow basic processes.
The bank is called as the lender, the one who lends some money to purchase a property basing on their job, credit history and down payment, in order to purchase the home. The buyer agrees to have a home mortgage with the bank, with this the bank earns money as the interest accrues over a period of time.
Will the buyer needs to inform the homeowner to stop paying back the loan through mortgage? The bank needs security to be able to acquire ownership of the homeowners property.
The bank waits in a longer period of time before it could start the foreclosure that will allow from 3-6 months for the homeowners to begin doing payments on the mortgage. It is a very lengthy process. On a pre-foreclosure, the trustee usually a local attorney, will then prepare for the foreclosure.
The foreclosure will start as when the bank files a Notice of Default through a trustee together with the County Recorders Office. The notice served will enable the county and the property owner learns that the bank is ready for the foreclosure of the owners property.
The trustee will inform the property owner in regards to the incoming short sale foreclosure. either by posting on newspaper and sending the Notice of Default in the owners property through mail or the trustee contacts the property owner and arrange ways on how to repay the mortgage.
The trustee will file a Notice of Sale with the Country Recorders Office if the mortgage loan is not brought to the date with in 3 months.The notice of sales is also being posted on local newspaper and also on the owners property.