Bank Repossession

Bank repossession is the last stage of legal process known as foreclosure. First the borrower consecutively defaults in making payments. This leads to delinquency. At this point the lender, usually the bank, sends a notice warning that the agreement will be closed before time or foreclosed. The notice is pasted on the property and also inserted in local newspapers. A certain time is given for the borrower to set his finances in order after the expiry of which a public auction under the aegis of the Sheriff will be held in the courthouse. The proceeds from the auction sale will clear the mortgage, tax or any other dues. If something is left over the ex-owner will be given the amount.

At this point the question of bank repossession arises. If the auction sale is successful and the requisite amount is realized then the bank does not have repossess the unit as the matter is settled. Banks repossess the units when the auction sale fails. Of late this is what has been happening because of a hostile real estate market that is falling in points by the day. In blunt terms – it means there are no buyers worth the name. In the simple basic logic of supply and demand there are too many products – in this case property – in the market. Naturally prices will fall. To aggravate matters buyers are at a priority because of the credit crunch. With properties going into foreclosures one after another – the number running into millions across the country – the banks are not being able to collect monthly dues. Money is not rolling in. To add insult to injury for banks they have to pay through their noses to go through the time and money guzzling process of foreclosure. At the end of show there are no buyers. Banks without money cannot advance loans for purchasing houses. From where will the buyers get funds if mortgage lenders tighten their belts? For further information about Orlando repos, log on to USRepos.

After failing in the auction to get a fair deal the banks directly take over the property and now it becomes REO or real-estate-owned. Once more the house is up for sale but with a difference. The buyer need have no pangs about taking over the house because here no emotion or tears are involved. It is no longer a home but an impersonal house. That chapter is over. In the case of the foreclosed property the buyer did not have the chance to inspect the place but now the doors are open and the prospective buyer can go over the estate in details. Thirdly in the previous case of the foreclosed house there was a good chance of it not being vacant. The ex-owners might be lingering or there may be stubborn tenants. And the longer the disgruntled occupants remained the greater the chances of last minute serious damage and vandalism. The greatest bonus of opting for a house repossessed by the bank is that the deeds are clean and unencumbered. So for first time house-buyers and investors this is a good chance to try your luck.