explore it in greater depth in Chapter 6.
HOW THE PRICE IS DETERMINED TERMINED
Unlike a traditional home sale, in which the seller compares properties to determine how much the home is worth, the lender will go for a different method. The starting bid will include the balance of the unpaid loan, interest owed, attorney fees, and costs incurred from the foreclosure process.
WHAT IF IT DOESN'T SELL?
In the event that no one buys the home, ownership reverts to the lender. This bank-owned or “real estate-owned” (REO) property means that the lender now assumes all property rights and responsibilities. Those responsibilities include property care and maintenance. The lender then usually works with a real estate agent to find a buyer. Online sites, such as Zillow, offer some bank-owned properties for sale. Some lenders resort to a liquidation auction, selling their REO properties at a private auction house or in a convention center. The home will be sold “as is.” This means it’s sold in its current condition and the lender will not be making any repairs or improvements. The bank also has the option to rent the property through a property management company, although this is rare.
VACATING THE PROPERTY
Generally, you will not be required to vacate the property on the date of the foreclosure auction. However, if you refuse to vacate at all, the bank — or the new owner with the winning bid — can initiate eviction proceedings on the day of closing. This process can take up to a few weeks. At the end of the process, you will be evicted — forcibly, if necessary. This is normally enforced by the local sheriff ’s department, whose deputies will either remove
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