{"id":7590,"date":"2012-08-14T18:31:01","date_gmt":"2012-08-14T13:01:01","guid":{"rendered":"http:\/\/www.bharatestates.com\/blog\/?p=7590"},"modified":"2020-06-15T04:44:47","modified_gmt":"2020-06-14T23:14:47","slug":"foreclosure-homes","status":"publish","type":"post","link":"https:\/\/www.bharatestates.com\/blog\/foreclosure-homes\/","title":{"rendered":"What are Foreclosure Homes?"},"content":{"rendered":"

\"Foreclosure-Homes\"A property which is put up for sale by the lender in case the borrower\/buyer defaults on loan settlement is known as a foreclosed home. If the borrower fails to make the payment in the time allotted, the lender has a right to sell off the property in order to recover the loan amount. Majority of the time, foreclosed homes are sold at a reduced value. This is because the lender is often in a need to promptly recover the investment in the foreclosed home.Difference between real estate and foreclosure:<\/strong>T<\/strong>he main aim of the real estate business is to benefit the Builder, Developers and Property Buyers. On the other hand, selling of foreclosed homes involves resolving the problems of the borrowers, who are unable to retain their property due to whatsoever reason. The rates of foreclosure properties are lesser in comparison to the rates of real estate properties<\/a>. For the buyers, foreclosure homes are affordable than the real estate properties, as they often come in discounted prices. In India the lenders most often turn out to be banks or other such private institutions.<\/strong>Types of foreclosures:<\/strong><\/strong>1. <\/strong>Judicial Foreclosure<\/strong><\/em>This is also known as strict foreclosure<\/strong>. Many a times, the lender officially sues the borrower. In such cases, the judgement is often in the lender\u2019s favour. The officers of the court subject the property to auction. This is for the sake of protecting the borrower\u2019s interest. The property is issued to the winning bidder at the auction. If no buyer steps forward to bid the property, the lender earns the property title2.\u00a0<\/strong>Non-judicial Foreclosure<\/strong><\/em>This is also known as statutory foreclosure<\/strong>. Foreclosing a property without getting a court order is known as non-judicial foreclosure. It does not involve any judicial proceedings. In some cases, non-judicial foreclosures are heavily regulated. An important document of the non-judicial foreclosure is the \u2018deed of trust\u2019 wherein borrower appoints a trustee who will conduct the non-judicial foreclosure in case of defaults.Advantages of foreclosure homes:<\/strong><\/p>\n